Mortgage underwriting standards slipped in the middle of this decade, resulting in greater numbers of mortgages that had high combined loan-to-value ratios or for which incomplete documentation was provided. More than 40 percent of the subprime loans originated in 2006 had combined loan-to-value ratios in excess of 90 percent, a considerably higher share than earlier in the decade.
We are all familiar with poor consultants; he or she may tell you what you want to hear as they believe that will be how they are engaged for further work. Our supervisors should not be consultants. They can and should differ with both firm’s management and consultants hired by the firm.