Tuesday, March 4, 2008

“quick consultation” to provide new credit ratings system

Darling to push ‘gold standard’ mortgages

One of the key components of current problems; great to see the finest minds have analysed the system, identified its problems, systematically modelled how it will work in the limit conditions of human greed and implemented the best possible solution ... well either that or the PR agent called and said they needed a good news story yesterday.

Posted by whiteknight @ 10:14 PM (515 views)
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6 thoughts on ““quick consultation” to provide new credit ratings system

  • whiteknight says:

    But she added there must be flexibility in the types of mortgages to be included in a gold standard securitisation because there was a “risk in stigmatising non-conforming mortgages”.

    But obviously not so flexible that in the good times people will figure out how to legally create a new entity or product that “conforms” but is infact riskier than frying bacon naked.

    Nor will this scheme be administered by people who in the good times are so happy to see their paychecks or votes going north so that they are tempted to let things slide.

    Because if that were the case then the scheme would be worthless. But obviously it won’t be the case.

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  • Pathetic. This is a blatant attempt by Darling to prop up the ailing UK housing market because he and Brown both know full well that falling house prices will be the end of them. I wonder why they didn’t feel the need to intervene when the market was rising in an unsustainable manner?

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  • who stole my pension? says:

    Quote “Research by Morgan Stanley shows that the leading seven UK mortgage lenders have £206bn in outstanding securitised mortgages, some 28 per cent of mortgage assets, and would face “severe problems” if the market does not unfreeze soon”.

    Anybody know who the seven banks are? Seens like it time to get your money out quick! I suspect this rescue scheme will fail like all the others as peoples confidence has been shattered and house prices are falling.

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  • The question is who are the UK mortgage lenders going to sell the mortgages on to ?

    In the past the Swiss and German banks were hoovering this up as if borrowing was about to go out of fashion.
    Now that they have lost billions and have had to be bailed out by the UAE it is lending that has gone out of fashion.

    For years it puzzled me how the amount of money lent in the UK could exceed the amount saved.
    After the credit crunch I doubt if it will be able to.

    :- Duncan

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  • hmmm I think what they need to do is revise how the public are credit checked and rated…. it is sooo out of date and files are held for too long ( 6 years) thre are many reasons someone has defaulted 5 years ago but it is still held against them, I think this system should be looked at, not something that will give northern rock the edge….

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  • IMO info should be held on credit files for more than 5 years. Should be 20. Otherwise you get people doing things like getting loans with every intention at the outset that they will file for bankruptcy/IVA. If they could do that and have a clean sheet a couple of years later it would be far more profitable than working for aliving. Much like the opinion of BTLers in a bull market, it would have devestating social effects.

    Companies have the choice whether to share infomration with the credit bureauxs. IMO it should be obligatory.

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