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Risks of nonbank mortgage sellers and servicers revisited

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An op-ed I wrote that appeared recently in HousingWire on the nature of nonbank mortgage company risks and Ginnie Mae’s proposal to impose risk-based capital and liquidity requirements on their issuers highlighted nonbank lighter safety and soundness regulation as a concern for generally higher risk profiles of these firms relative to depositories. 

In light of this important industry and policy topic, I thought it instructive to provide further insight into the arguments raised from that previous piece.

In a comprehensive study of mortgage market liquidity, Liquidity Crises in the Mortgage Market, several well-known academics details ⇒

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