Do Nonbank Mortgage Companies Threaten Financial Stability?

Ed DeMarco is president of the Housing Policy Council and former acting director of the Federal Housing Finance Agency. He discusses the rise of nonbank mortgage companies and what the Financial Stability Oversight Council’s recent report on nonbank mortgage servicing gets right and what it gets wrong. Ed also offers his thoughts on the FHFA’s Title Insurance Waiver Pilot Program, Freddie Mac's proposal to purchase second mortgages, and the CFPB’s inquiry into junk fees in mortgage closing costs. Finally, DeMarco shares his views on Kamala Harris’ housing policy proposals and their potential impact on the housing market.

Lee’s X: @leereiners

Related Links:

FSOC Report on Nonbank Mortgage Servicing: https://home.treasury.gov/news/press-releases/jy2331

Director Sandra Thompson's Statement on Title Acceptance Pilot: https://www.fhfa.gov/news/statement/director-sandra-thompsons-statement-on-title-acceptance-pilot

FHFA Announces Conditional Approval of Freddie Mac Pilot to Purchase Second Mortgages: https://www.fhfa.gov/news/news-release/fhfa-announces-conditional-approval-of-freddie-mac-pilot-to-purchase-second-mortgages

CFPB Launches Inquiry into Junk Fees in Mortgage Closing Costs: https://www.consumerfinance.gov/about-us/newsroom/cfpb-launches-inquiry-into-junk-fees-in-mortgage-closing-costs/

Housing Finance Quick Takes video series: https://www.housingpolicycouncil.org/hfqt