Federal Reserve Board (FRB)

Second-lien strategies and Non-QM products are helping originators unlock equity without forcing borrowers out of low-rate first mortgages

New strategy reflects growing institutional demand for diversified credit and signals continued support for non-agency lending markets

The shift could also reshape competitive dynamics between banks and nonbanks across mortgage origination and servicing

A group of trade associations is urging regulators to ease mortgage-related capital requirements, arguing reforms could restore bank participation in lending, servicing, and securitization, while strengthening housing affordability

Federal Reserve Vice Chair Michelle Bowman signaled forthcoming capital rule changes aimed at easing MSR treatment, and increasing risk sensitivity to strengthen banks’ participation in mortgage origination and servicing

January’s delayed and frequently revised economic data paints a mixed picture: solid GDP growth and easing housing prices alongside stubborn inflation, softening labor trends, volatile rates, and sharply weakening consumer confidence