Revamp for US mortgage banks

New angles

When the banks register they must comply with the SEC Act of 1934, which requires disclosure of financial statements and information related to transactions. They will also be subject to the Sarbanes-Oxley Act, which demands enhanced accounting disclosure for derivatives.

Some of the mortgage banks have already been downgraded because of risk management concerns. Last December, Standard & Poor’s (S&P) lowered its long-term credit rating on the Federal Home Loan Bank of Seattle to AA+ from AA