The Financial Stability Oversight Council (FSOC) has released a new report detailing the risks and benefits of nonbank mortgage servicers, as well as their rapidly growing share of the industry. The report also recommends actions for increased oversight to ensure these companies are safer and more reliable.
In response to these recommendations, Alexandra Thornton, senior director of financial regulation at the Center for American Progress, issued a statement. "Over the past 15 years, the nonbank mortgage companies that Americans increasingly rely on to facilitate the smooth purchase and repayment of their home loans have grown dramatically but without commensurate oversight," she said.
Thornton added that the report makes thoughtful recommendations on how Congress and regulators can supervise these firms more rigorously and reduce the likelihood of their failure. "Implementing these reforms would make nonbank mortgage servicers safer and more reliable and would better enable them to serve the needs of U.S. households," she concluded.
For further reading on this topic, Gregg Gelzinis's "Strengthening the Regulation and Oversight of Shadow Banks" is suggested.
For additional information or interviews with experts, please contact Sarah Nadeau at [email protected].
