The expert magazine of Ostrum AM

Find the full article in the Ideas magazine of January 13, 2019.

Highlights

  • Nonbank lenders are now big players in the US mortgage market ;
  • They dominate the market for loans to low-income families guaranteed by the federal government  ;
  • These alternative lenders are subject to far less regulation than mainstream banks;
    they are heavily reliant on short-term funding and have only a slim cushion of resources to weather a shock ;
  • They pose a financial stability risk—a systemic liquidity risk ;
  • If a crisis hits, the taxpayer could be on the line—for considerable amounts ;
  • Federal regulators are only beginning to become aware of the risk exposure .

Risks related to nonbank mortgage lending in the United States

Find the full article in the Ideas magazine of January 13, 2020.

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