Risk premiums were also very low, because investors believed in the continuation of a favorable macroeconomic environment – dubbed great moderation – and because they trusted in the optimistic assessments dished out by the credit rating agencies.
We have begun a comprehensive program of rigorous consumer testing of potential improvements to current disclosures. Conclusion There are more elements of our comprehensive proposal that I do not have time today to discuss, such as a prohibition against coercing appraisers and restrictions on unwarranted servicing fees.