Marketplace All-in-One Why would the Fed loosen mortgage regulations?
Feb 17, 2026
Nova Safo, reporter who covers culture and physical media, and Samantha Fields, health and science reporter, join Sabri Beneshore, housing and mortgage reporter. They dig into the Fed's review of mortgage capital rules and how banks left the market after 2008. Other highlights include vaccine research funding shifts and the surprising comeback of DVDs and video stores.
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Regulation Shift Shrunk Bank Mortgage Role
- Post-2008 rules pushed banks out of mortgage origination, shifting most lending to non-banks and fintech firms.
- The Fed now considers easing capital and servicing requirements to bring banks back and boost mortgage supply.
Targeted Capital Relief Could Reignite Lending
- The Fed may reduce capital required against mortgage portfolios and servicing operations to reflect risk differences more accurately.
- That flexibility could encourage banks to offer more mortgages and re-engage in the market.
Calibrate Capital Rules To Actual Risk
- Policymakers should calibrate capital rules to risk so banks don't hold equal cushions for low- and high-risk loans.
- Adjusting servicing capital requirements can free banks to manage mortgages without excessive safety cushions.