By Robert Schroeder
RISMEDIA, Sept. 21, 2007-(MarketWatch)-More delinquencies and foreclosures can be expected in the subprime, adjustable-rate mortgage market as borrowers face interest-rate resets, Federal Reserve Chairman Ben Bernanke said Thursday.
In prepared testimony to the House Financial Services Committee, Bernanke also said that the market for those mortgages has “adjusted sharply,” and that markets “do tend to self-correct.” He outlined steps the Fed is taking to help reduce the risk of foreclosure and stressed the need to beef up underwriting practices. The Fed chief said he’s opposed to raising the conforming loan limit for Fannie Mae and said that the central bank stands ready to foster price stability and sustainable economic growth.
Copyright© 2013 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.
Content on this website is copyrighted and may not be redistributed without express written permission from RISMedia. Access to RISMedia archives and thousands of articles like this, as well as consumer real estate videos, are available through RISMedia's REsource Licensed Content Solutions. Offering the industry’s most comprehensive and affordable content packages. Click here to learn more! http://resource.rismedia.com