Banking

When the U.S. Government Training Wheels Come Off the Lending Industry, So Will the Gloves 

WOHICA. Not a small town in Kansas. Instead a simple acronym for “watch out, here it comes…” For all lenders – small, medium or large – buybacks and rescissions are the haymaker punch aimed squarely at their 2010 financials. Last year was nothing compared to what we expect to see this year, as rescissions from the MI’s and the repurchases from the GSE’s will fuel their capital starved balance sheets. The days of governmental coddling of the lending community are over. The gloves are off, here it comes.