The US Treasury warned of possible problems for the rapidly growing number of non-bank mortgage companies. This was reported by RIA News.
According to the regulator, they can go bankrupt due to limited access to finance and specialization in risky borrowers.
The number of nonbank lenders in the U.S. mortgage market has increased significantly in recent years. This increases Treasury Secretary Janet Yellen’s concerns. She said their possible bankruptcy could create systemic risks.
The segment’s growth has been spurred in part by the regulators themselves. Following the 2008 crisis, banks’ capital requirements were tightened significantly. Servicing rights on mortgage loans began to be actively purchased by non-banking companies subject to less stringent conditions.
But unlike banks, nonbank lenders cannot withdraw customer deposits and receive emergency funds from the Fed. For this reason, their access to financial resources is limited, says Boris Bogoutdinov, managing partner of 2B Dialog.
This makes such companies vulnerable in difficult market conditions, where banks may refuse to give them loans. They also often work with risky borrowers, despite lessons learned from the 2008 crisis.
According to experts, large-scale bankruptcies of non-bank mortgage institutions may lead to a new crisis in the market. To prevent this, the regulatory body plans to strengthen control over its activities.
Before that, the American stock market pouted A new bubble about to burst.
in the world before was recorded Record national debt in 50 years.