As the economy, housing market and lending quality have improved, many lending institutions are reconsidering the level of reserves they created to offset potential exposure if the government-sponsored enterprises (GSEs) launch a large-scale repurchase campaign, similar to the one they embarked on during the financial crisis.
Milliman Principal and Consulting Actuary Jonathan Glowacki and Milliman Actuarial Analyst Edem Togbey told Dodd Frank Update why lenders should consider releasing those reserves as income, and explained why many have yet to do so.
Find out what advise they had to offer about the matter.