Marketplace Why would the Fed loosen mortgage regulations?
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Feb 17, 2026 Sabri Beneshore, a housing and finance reporter, explains why the Fed is rethinking mortgage capital rules. He outlines how banks retreated from lending after 2008 and how proposed capital changes might nudge mortgages back toward banks. The conversation also touches on servicing capital tweaks and how those shifts could affect who issues home loans.
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Regulation Shift Changed Who Makes Mortgages
- Post-2008 rules pushed banks out of mortgage origination and non-banks filled the gap.
- Easing capital and servicing requirements could bring banks back and expand mortgage supply.
Fed May Ease Capital Rules To Boost Lending
- The Fed is considering reducing capital banks must hold against mortgages and servicing activities.
- That targeted flexibility could incentivize banks to resume originating more home loans.
Monitor Fed Moves Before Hunting For A Mortgage
- Watch regulatory updates from the Fed to anticipate changes in mortgage availability and competition.
- Consider timing mortgage shopping around potential rule changes that could increase bank lending.