Fed Wants Big Banks Back in the Mortgage Business

New Fed proposals could reshape mortgage capital requirements

Regulatory changes to how banks treat mortgage assets — anticipated this week by Federal Reserve Vice Chair Michelle Bowman — may have an impact on the mortgage market over time, analysts said. “The near-term impact on the mortgage market is likely to be somewhat limited,” Keefe, Bruyette & Woods (KBW) analysts wrote in a report published Tuesday. “There are few large banks limiting their participation specifically due to the capital treatment o…

Fed Wants Big Banks Back in the Mortgage Business

The Federal Reserve wants to get banks to focus on mortgage lending once more, The Wall Street Journal reported Wednesday (Feb. 18). Many banking giants in the United States got out of the home loan business following the 2008 financial crisis, with nonbanks like Rocket and Pennymac taking their place, the report said. New rules created in response to the Wall Street meltdown required lenders to set aside more money to cover potential …

Home Loans Could Get Cheaper If Banks Re-Enter Mortgage Game Thanks to New Rules

I’ve long said that the banks weren’t interested in mortgages anymore. Their distaste for home loans probably began post-2008 when several were forced to close their doors. Remember Bear Stearns, Wachovia, or Washington Mutual? Others had to take massive losses due to faulty loans that should have never been made, leading to new regulations put… Read More »Home Loans Could Get Cheaper If Banks Re-Enter Mortgage Game Thanks to New Rules The post …