A new report by the Financial Stability Oversight Council (FSOC) recommended state regulators and Congress take steps to minimize “significant liquidity risk” posed by the nonbank mortgage servicing industry.
The FSOC report, released Friday, noted that while the nonbank mortgage servicing industry has implemented innovations in technology and mortgage default servicing, the sector as a whole is vulnerable to liquidity risk in the event of a housing market downturn, which would affect many industry players at the same time.
