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Regulatory Panel Calls Out Nonbank Mortgage Lenders as Risk

The Financial Stability Oversight Council has called the rise of nonbank mortgage lenders and servicers a potential threat to financial stability. So reports Reuters.

The U.S. regulatory panel, in its latest annual report, urged policymakers to increase federal and state oversight of nonbank lenders, which it said now represent more than half of all new mortgages but receive less oversight than traditional banks.

The Treasury Department-led panel had never before characterized nonbank lenders as a systemic risk in one of its annual reports.

Read the full article from Reuters.

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