Non-bank firms are now big players in America’s mortgage market

Not so bankable

TWICE IN THE past 30 years, housing finance has taken down America’s economy. As interest rates rise and the housing market stutters (see article), regulators are again pondering the risks from the mortgage market—this time from a shift towards non-bank originators.

These firms, which create mortgages and often sell them on to other institutions, exist outside the bank-regulatory framework. They now account for 44% of lending by the top 25 originators, up from 9% in 2009, according to Inside Mortgage Finance, a trade publication. Five of the largest ten are non-banks, as is the largest retail mortgage originator, Quicken Loans. Their market share for servicing mortgages, or collecting monthly payments, has risen from 5% in 2009 to 41% in 2018.

Some of this shift reflects non-...



via The Economist: Finance and economics Business Feeds

0 nhận xét:

Post a Comment