INSUBCONTINENT EXCLUSIVE:
of an economically damaging cash crunch in the $ 11trillion home mortgage market.
Behind the concern aired recently at the Financial
Stability Oversight Council headed by Secretary Mnuchin: The rapid growth of so-called shadow banks in the origination and servicing of home
times of financial stress
The worry is that could end up hurting the housing market and the economy as the financiers are forced to cut back or curtail their mortgage
business.
FSOC, the umbrella group of regulators established after the financial crisis which includes Fed Chairman Powell and Securities
and Exchange Commission chief Jay Clayton, discussed the home loan market in September.
Staff from the Fed, the Federal Housing Finance
business as a risk to financial stability
In fact, mortgage originations surged in the second quarter as lower interest rates enticed home owners to refinance their loans.