Mortgage Firms Teeter Near Crisis That Regulators Saw Coming
- Nonbanks may not survive without a government rescue
- Before virus, firms fought tougher capital requirements
Houses stand in this aerial photograph taken near Mountain View, California.
Photographer: Sam Hall/BloombergThis article is for subscribers only.
Nonbank financial firms spent years lobbying against tougher regulation and stricter capital requirements, arguing that their emerging dominance in mortgage lending didn’t pose a risk to the financial system.
Now, many of those companies say they are in desperate need of a bailout to stave off bankruptcy and a potential collapse of the U.S. housing market.