FINANCIAL STABILITY BOARD BASEL: RESIDENTIAL MORTGAGE UNDERWRITING PRACTICES

September 24, 2010 at 7:39 am | Posted in Economics, Eurozone, Financial, Globalization, Research, World-system | Leave a comment

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Bank for International Settlements (BIS)

The Financial Stability Board (FSB)

FSB invites feedback on residential mortgage underwriting practices

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

Mon 9/20/10

The Financial Stability Board (FSB) has launched a review of residential mortgage underwriting and origination practices. Problems arising from poorly underwritten residential mortgages contributed significantly to the global financial crisis that began in 2007. The review will survey existing practices across the FSB membership, including recent actions taken by national authorities to promote sound practices, and draw internationally applicable lessons.

The review will be based on the recommendations made by the Joint Forum in its January 2010 Review of the Differentiated Nature and Scope of Financial Regulation. The Joint Forum focused on two fundamental areas of concern in the residential mortgage market: poor underwriting practices and the lack of consistent supervisory and regulatory regimes for similar activities and products. A questionnaire (attached) to collect information from national authorities has been distributed to FSB members, and the responses will be analysed and discussed by the FSB later this year. The review will be completed and published in early 2011.

As part of this review, we welcome feedback from financial institutions, industry associations, consumer groups and other stakeholders on their experiences regarding residential mortgage underwriting practices, either in a particular country or across several countries. This could include comments on:

· gaps in regulatory and supervisory oversight;

· areas where regulations or guidance from different agencies might overlap;

· current or best practices for measuring a borrower’s ability and willingness to repay;

· how market practices have evolved in recent years; and

· challenges faced by underwriters or originators that operate in several countries.

Feedback should be submitted by 25 October 2010 to fsb@bis.org under the subject heading “FSB Thematic Peer Review on Mortgage Underwriting Practices.” Individual submissions will not be made public.

This is the third FSB thematic peer review in 2010. The first was the review of compensation, completed in March 2010, and the second is the review on risk disclosures, which is currently underway.

Notes to editors

The FSB has been established to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies. It brings together national authorities responsible for financial stability in significant international financial centres, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts.

The FSB is chaired by Mario Draghi, Governor of the Bank of Italy. Its Secretariat is located in Basel, Switzerland, and hosted by the Bank for International Settlements.

For further information on the FSB, visit the FSB website, www.financialstabilityboard.org.

Bank for International Settlements (BIS)

Bank for International Settlements (BIS)

The Financial Stability Board (FSB)

FSB invites feedback on residential mortgage underwriting practices

www.financialstabilityboard.org

fsb@bis.org

Press, Service (press@bis.org)

Publications, Service (Publications@bis.org)

Mon 9/20/10

Press release

International Association of Deposit Insurers announces

selection of new Secretary General

The International Association of Deposit Insurers (IADI) announced the selection of Carlos Isoard to succeed Donald Inscoe as Secretary General of IADI, effective 15 September 2010 for a three-year term.

Mr Isoard is a former member of the Governing Board of the Instituto para la Protección al Ahorro Bancario (IPAB), Mexico’s deposit insurance agency. In that capacity he was a founding member of IADI, serving on the Financial Stability Forum Working Group on Deposit Insurance that recommended the creation of IADI in 2002. In his roles with IPAB, he had extensive interactions with the BIS and the FSB. Prior to his service on the Governing Board of IPAB, Mr Isoard worked for over 25 years at the Bank of Mexico, in several capacities.

Martin Gruenberg, President of IADI and Chairman of its Executive Council, noted in his announcement to the membership, “We are confident that Mr Isoard will be an outstanding Secretary General and will work effectively to strengthen IADI’s operations and advance the objectives of our association.”

The International Association of Deposit Insurers (IADI) was formed in May 2002 to enhance the effectiveness of deposit insurance systems by promoting guidance and international cooperation. Members of IADI conduct research and produce guidance for the benefit of those countries seeking to establish or improve a deposit insurance system. IADI currently represents 62 deposit insurers from 61 jurisdictions. IADI is a non-profit organisation constituted under Swiss law and is domiciled at the Bank for International Settlements in Basel, Switzerland.

INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS
c/o Bank for International Settlements
Centralbahnplatz 2
CH-4002 Basel, Switzerland
Tel: +41 61 280 99 33
Fax: +41 61 280 95 54
E-mail: Service.IADI@bis.org
Website: www.iadi.org

Press release: International Association of Deposit Insurers announces selection of new Secretary General

INTERNATIONAL ASSOCIATION OF DEPOSIT INSURERS
c/o Bank for International Settlements
Centralbahnplatz 2
CH-4002 Basel, Switzerland
Tel: +41 61 280 99 33
Fax: +41 61 280 95 54
E-mail: Service.IADI@bis.org
Website: www.iadi.org

Fri 9/24/10

A speech by Mr Nout Wellink, Chairman of the Basel Committee on Banking Supervision and President of the Netherlands Bank, entitled A new regulatory landscape is now available on the BIS website (www.bis.org).

Mr Wellink gave the speech today at the 16th International Conference of Banking Supervisors in Singapore.

Communications,

Bank for International Settlements

E-mail: press@bis.org

Website: www.bis.org

Phone: +41 61 280 8188

Press alert: Nout Wellink speech now on the BIS website

Mr Nout Wellink

Chairman of the Basel Committee on Banking Supervision

Wed 9/22/10

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