Clayton Holdings Inc., a provider of information and analytics to the banking and fixed-income securities markets, has introduced an analytic tool to help large lenders and Wall Street conduits determine whether closed loans they are buying meet prevalent "suitability" standards.The first release of the product focuses on payment shock and recalculates ability-to-pay using a fully indexed, fully amortized schedule, the company said. The suitability issue -- the contention that lenders are responsible for ensuring that a loan is suitable for a specific borrower -- has gained momentum as subprime loan defaults and foreclosures have mounted, Clayton noted. "There are layers to the debate -- and the definitions -- around suitability and nontraditional mortgages," said Keith Johnson, Clayton's chief operating officer. "Rather than wait for it to be fully defined and legislated, we assessed the issues currently being debated, spoke with our clients, and determined what is immediately needed to address this issue." Clayton, based in Shelton, Conn., can be found online at http://www.clayton.com.
-
According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
9h ago -
Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
10h ago -
McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
11h ago -
The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
April 19 -
The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
April 19 -
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18