Policymakers Must Address Excessive Regulations in RMBS Market

Excessive regulations combined with low interest rates are reducing liquidity in the real economy, according to a Kroll Bond Rating Agency report, as reported in an article by National Mortgage News.

The Kroll Bond Rating Agency “identified a number of factors that could seriously be contributing to a liquidity crisis,” adding “without relief in terms of higher interest rates and meaningful regulatory reform, smaller nonbank seller/servicers operating in the U.S. mortgage market could fail.”Regulatory agencies, namely the Consumer Financial Protection Bureau and Federal Housing Finance Agency, have harmed the residential mortgage backed securities market by decreasing liquidity.

If you would like to join SFIG's RMBS 3.0 Committee, please contact William.Innes@SFindustry.org.

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