Michelle Bowman, vice chair of the Federal Reserve Board’s Committee on Oversight, announced that the Fed is preparing to ease capital requirements on banks in a bid to encourage lenders to extend mortgage lending to American homebuyers.
Mr Bowman said: “The Federal Reserve plans to make two amendments to the rules to increase incentives for banks to be more active in granting and servicing real estate loans.”
mortgage loan
He noted that banks have lost most of their share of the U.S. mortgage market as their contribution to mortgage lending has fallen from 60% in 2008 to 35% in 2023.
In contrast, financial services companies are increasingly responsible for granting and servicing real estate loans.
Michelle Bowman, vice chair of the Federal Reserve’s Board of Supervisors and Regulation, announced that the Fed is preparing to ease capital requirements for banks in a bid to encourage lenders to expand their mortgage lending activities to U.S. homebuyers.
Bowman said the Fed plans to make two amendments to the rules that would increase incentives for banks to be more aggressive in mortgage lending and servicing.
mortgage loan
He noted that banks have lost a significant portion of their share of the U.S. mortgage market, with their contribution to mortgage lending dropping from 60% in 2008 to 35% in 2023.
In contrast, financial services companies are increasing their share of mortgage lending and mortgage servicing activities.
