April 8, 2010
Comptroller Dugan Testifies Before the FCIC
WASHINGTON — Comptroller of the Currency John C. Dugan told the Financial Crisis Inquiry Commission that a key factor in the financial crisis was poor credit underwriting, particularly by nonbank lenders that were subject to little or no regulation, and said action is needed.
"I believe the government should establish minimum, common sense underwriting standards for mortgages that can be effectively applied and enforced for all mortgage lenders, whether they are regulated banks or unregulated mortgage companies," he said in testimony today. "If we had had such basic, across the board rules in place ten years ago on income verification, down payments, and teaser rate mortgages, I believe the financial crisis would have been much less severe than it was."
The Comptroller’s entire statement is available on the OCC's Web site at https://www.occ.gov.
- Oral Statement (PDF)
- Written Testimony (PDF)
- Appendix A: Federal Preemption of State and Local Fair Lending Mortgage Lending Laws (PDF)
- Appendix B: Activities of National Banks Related to Subprime Lending (PDF)
- Appendix C: Impact of the Community Reinvestment Act on Losses Incurred by National Banks (PDF)
- Appendix D: Changes in Laws and Regulations Impacting National Banks Engaging in the Issuance and Sale of Asset-Backed and Structured Investments (PDF)
- Appendix E: OCC Supervision of Citibank, N.A. (PDF)
- Comptroller of the Currency John C. Dugan