Five financial trade associations today unveiled an industry survey which examined more than 400 firms’ views of participation in the Troubled Asset Relief Program (TARP).
The short version: It’s too confusing.
"The industry needed more granular, tangible information on how TARP implementation could be most effective, and this survey provides that guidance to our industry and to policymakers,” said Tim Ryan, president and CEO of the Securities Industry and Financial Markets Association.
The survey found:
• Large firms are more likely to participate
• Institutions would prioritize the purchase of subprime and Alt-A residential real estate, followed by commercial real estate, particularly for smaller institutions
• Firms believe whole loans and securities should get roughly equal prioritization
• Firms disclosed that 50 percent to 60 percent of their assets are residential related, and those assets comprise both whole loans and securities
The survey was sent to members of Securities Industry and Financial Markets Association (SIFMA), American Securitization Forum (ASF), American Bankers Association (ABA), Mortgage Bankers Association (MBA) and Commercial Mortgage Securities Association (CMSA).
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