Merrill Lynch

Commentary: Reading the Subprime Tea Leaves 

Beyond the margin: Industry sources have told Housing Wire this week that Merrill Lynch is doing much more than conducting margin calls on warehouse credit facilities – the Wall Street bank is also aggressively reviewing its subprime mortgage holdings to identify possible repurchase claims. Part of the problem stems from rising early payment defaults, the result of a prolonged housing slump and underwriting standards that many in the industry say have been slow to adapt to market conditions. But rumors have been flying this week that that the issue at Merrill goes far deeper than just EPD repurchases.