Regulators issue warning on growth of nonbank mortgage sector

From American Banker:

WASHINGTON — The Financial Stability Oversight Council has identified the growth of nonbank mortgage origination and servicing as a new risk to the U.S. financial system, according to the interagency council’s annual report issued Wednesday.

The report, which Treasury officials said in theory could be a blueprint for future regulation, pinpoints 12 possible areas where the financial system is vulnerable and provides recommendations to regulatory agencies for mitigating any risk.