Bowman: Breathing New Life into Bank Mortgage Loans, Advancing with Basel Step by Step

Addressing Shifts in the Mortgage Industry

I'm delighted to be with you once again at this year's American Bankers Association Community Bankers Conference. Drawing from my background as a community banker, I value these opportunities to gain insights from your experiences, which help guide my responsibilities at the Federal Reserve.

Today, I want to highlight an emerging trend within our financial landscape that poses important challenges for banks, the stability of the mortgage sector, and the interests of consumers. Recently, there has been a notable movement of mortgage origination and servicing activities away from traditional banks. This shift may be influenced by regulatory considerations or other underlying causes, and its impact is being felt across the industry.