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:
“If my sons are to become the kind of men our daughters would be pleased to live among, attention to domestic details is critical. The hostilities that arise over housework...are crushing the daughters of my generation....Change takes time, but men’s continued obliviousness to home responsibilities is causing women everywhere to expire of trivialities.”
—Mary Kay Blakely (20th century)
“For the time of towns is tolled from the world by funereal chimes, but in nature the universal hours are counted by succeeding tribes of animals and plants, and by growth of joy on joy.”
—Ralph Waldo Emerson (1803–1882)
“In this nation I see tens of millions of its citizens, a substantial part of its whole population, who at this very moment are denied the greater part of what the very lowest standards of today call the necessities of life. I see one third of a nation ill-housed, ill-clad, ill-nourished. The test of our progress is not whether we add more to the abundance of those who have much, it is whether we provide enough for those who have too little.”
—Franklin D. Roosevelt (1882–1945)