And although the quality of loans written since the crisis has been high, banks fear they could be swamped with put-backs if the economy slows.
Suzanne Bach, the executive vice president of the IPI Skyscraper Mortgage Company, another leading broker in the region, said that the number of loans written by her firm in New York, New Jersey and Connecticut rose 20percentt from the first quarter of 2001 to the first quarter of 2002.
The problem with this criticism is that the majority of mortgage loans written since the financial crisis likely fulfilled the proposed requirements.
Still, the amount of corporate loans written off by the bank, at $148 million, was down slightly from the fourth quarter of 2000.
Ms. Seidman said the Federal Reserve and others had voiced concerns that loans might not be moved from the first bucket to others quickly enough, and that in some cases the goal of getting loans written down more quickly would be frustrated.
Through the end of July, auto loans written this year averaged more than 66 months — a record — and loans of 84 months or more now account for more than 5% of car loans, also a record, according to J.D. Power.
Through the end of July, auto loans written this year averaged more than 66 months -- a record -- and loans of 84 months or more now account for over 5% of car loans, also a record, according to J.D. Power.
The total amount of covenant-lite loans issued in the first two quarters of 2007 has been $105 billion, which tops the $32 billion of all such loans written from 1997 to 2006, according to Standard & Poor's, a rating agency.The largest issuers of the covenant-lite loans are private-equity firms, which have been able to dictate terms to lenders.
Banks are worrying about the extent of the loan write-offs they may need to take.
America needs to rid itself of politicians who propose ridiculous social engineering programs where the ultimate result is putting the loan write-downs on our backs and our children's backs.
