But some bankers say the changes have not gone far enough to enable them to sell loans made with flexible underwriting standards.

"We found signs that some banks have eased their underwriting standards over the last several quarters."

In effect, this section of the Act establishes national underwriting standards for residential loans.

The bank grew consistently through the early 1970s, however, the bank's growth undermined its underwriting standards.

But in return for that guarantee, borrowers were held to strict underwriting standards.

That "back stop" could also decide the underwriting standards and police the banks on their implementation.

Neither does it explain why underwriting standards became a joke.

This contributed to a decline in underwriting standards and was a major cause of the financial crisis.

"Trading lower underwriting standards for improved loan growth can lead to serious problems in future quarters and years," he wrote to 3,000 banks.

They would not have qualified for their loans if the bank had used traditional underwriting standards.