U.S. Rep Barney Frank, who is chairman of the House Financial Services Committee, is in the FT today calling for increased subprime regulation. Three main things:
- All mortgage originators must be subject to reasonable regulation
substantively similar to those that apply to depository institutions.
This means some form of licensing and the proscription of loans that
should not be made because there is no reasonable prospect of their
- Regulatory “guidelines” for mortgage securitization
- A broader rethink of financial markets regulation