Continued Growth and Lower Standards
The private mortgage securitization market continued to grow, and by 2004, had overtaken government/GSE mortgage backed securities issuance. (This is false, based on the cited source -- the rate of private securitization overtook the GSE rate in 2005. Total private issuance never overtook total GSEissuance) Private MBS grew primarily by lowering their standards and securitizing more low quality, high risk mortgages such as Alt-A, and subprime mortgages. Scholars have argued that this relaxation of standards was due to greater competition between securitizers for loans, and greater market power for loan originators. GSEs also relaxed their standards in response, but GSE standards remained higher than private market standards, and GSE securitizations continued to perform well compared to the rest of the market.
Read more about this topic: Residential Mortgage-backed Security
Famous quotes containing the words continued, growth and/or standards:
“Calmed by my pleading,
she continued to list your crimes,
found that ten fingers weren’t enough
and cried for a long time.”
—Hla Stavhana (c. 50 A.D.)
“Hence, the less government we have, the better,—the fewer laws, and the less confided power. The antidote to this abuse of formal Government, is, the influence of private character, the growth of the Individual; the appearance of the principal to supersede the proxy; the appearance of the wise man, of whom the existing government, is, it must be owned, but a shabby imitation.”
—Ralph Waldo Emerson (1803–1882)
“Men are rewarded for learning the practice of violence in virtually any sphere of activity by money, admiration, recognition, respect, and the genuflection of others honoring their sacred and proven masculinity. In male culture, police are heroic and so are outlaws; males who enforce standards are heroic and so are those who violate them.”
—Andrea Dworkin (b. 1946)