WASHINGTON — The Securities and Exchange Commission has launched 50 investigations that constitute a wide swath within the subprime lending industry.
SEC Chairman Christopher Cox told Capitol Hill lawmakers late last week that investigation targets include subprime lenders, securitizers, including investment banks and credit rating agencies, as well as the banks and broker-dealers who sold mortgage-backed investments to the public.
The agency is looking into whether mortgage lenders properly accounted for the loans in their portfolios, whether they established appropriate loan loss-reserves and whether lenders adequately disclosed the risk profiles of loans in connection with the sale of mortgage-backed securities and collateralized debt obligations.
Recommended For You
The SEC isn't the only government agency looking at the mortgage market. FBI Director Robert Mueller told the House Judiciary Committee late last week that the agency is investigating 26 companies for mortgage fraud. The FBI declined to provide further details.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
