Federal Government Expands Exposure to Risky Mortgages
Damien Paletta, in an October 2, 2019 article in washingtonpost.com, writes “the federal government has dramatically expanded its exposure to risky mortgages, as federal officials over the past four years took steps that cleared the way for companies to issue loans that many borrowers might not be able to repay”.
This move is reminiscent of the events that led up to the 2008 Great Recession. Credit unions should learn from lessons past and be prepared for a recession that could lead to extensive lay-offs and loan defaults by having loan portfolio risk management tools in place.
TCT Risk Solutions provides a Credit Migration tool that is one of the best for managing impending risk in loan portfolios.