WASHINGTON (Dow Jones/AP) -- The Federal Reserve and other regulators are launching a new pilot project to keep a better eye on the mortgage practices of non-depository subprime mortgage firms.
The new project, set to begin in the fourth quarter, and will focus on roughly a dozen non-depository subsidiaries of bank and thrift holding companies, as well as mortgage brokers doing business with, or working for, those entities.
Critics claim such companies have slipped through the cracks of state and federal oversight, and helped fuel the rapid expansion of the subprime mortgage market during the recent housing boom.
The resetting of many adjustable-rate mortgages into higher rates over the last year have pushed record numbers of homeowners into the foreclosure process.
To comment, the following rules must be followed:
Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Links require admin approval before posting.
Questions may be sent to firstname.lastname@example.org. Please provide detailed information.