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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Claire Boston · Senior ReporterUpdated Fri, February 27, 2026 at 9:01 PM GMT+1 4 min readHistorically, if you wanted a mortgage, your first stop was likely at a bank or a local credit union. But in recent years, you’re more likely to have borrowed from a specialized mortgage company that isn’t a bank at all, like CrossCountry Mortgage, Rocket, or loanDepot.The Federal Reserve would like to change that. It’s considering tweaking the rules designed to incentivize banks to lend more and stay involved in mortgage servicing, the long-term administrative process of collecting and distributing payments. The goal is to introduce fresh lending competition into the frozen housing market and help lower mortgage rates.“The capital treatment of mortgage loans and mortgage servicing assets under the U.S. standardized approach has resulted in banks reducing their participation in this important lending activity, limiting access to mortgage credit,” Michelle Bowman, the Fed vice chair of supervision, said in testimony before the Senate Banking Committee on Thursday.“We are considering approaches to differentiate the riskiness of mortgages in ways that will benefit financial institutions of all sizes, not just the largest banks.”In 2008, banks originated at least 60% of US mortgages and serviced almost all of them, while nonbank lenders did the rest. But in recent years, those numbers have essentially flipped. As of 2023, banks accounted for around 35% of originations and less than half of servicing, according to Treasury data.Banks have been retreating from the mortgage market for several reasons. The mortgage business has thin margins compared to other common banking services, and rising rates have depressed business in recent years.Regulatory changes that went into effect in the aftermath of the financial crisis also play a role. Those rules, designed to ensure banks have enough money set aside to cover losses on risky assets, made it more onerous for banks to hold mortgage loans and servicing rights on their books.Nonbanks, meanwhile, are governed by a different set of regulatory requirements, often from states, and have worked to grow their businesses as banks stepped away. The added competition has made it even less enticing for banks to stay in the business.On Thursday, Willamette Valley Bank, a community bank based in Salem, Ore., announced it was exiting the mortgage lending business, saying that higher rates and the growth of nonbank lenders were making it harder “to compete sustainably in this segment.” Last year, banks including Popular, Ally Financial, and WaFd Bank ended mortgage lending as well.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,878.88 -29.98 (-0.43%)Dow 3048,977.92 -521.28 (-1.05%)Nasdaq22,668.21 -210.17 (-0.92%)Russell 20002,632.36 -44.93 (-1.68%)VIX19.86 +1.23 (+6.60%)Gold5,247.90 +53.70 (+1.03%)Trending tickersBTC-USD Bitcoin USD 67,641.32 +1,757.40 (+2.67%)CL=F Crude Oil Apr 26 67.02 +1.81 (+2.78%)ETH-USD Ethereum USD 2,034.79 +106.61 (+5.53%)XRP-USD XRP USD 1.43 +0.07 (+4.83%)BTC-CAD Bitcoin CAD 92,320.26 +2,398.59 (+2.67%)PortfolioSign in to access your portfolioSign inTop gainersAAOI Applied Optoelectronics, Inc. 84.23 +30.54 (+56.88%)BWIN The Baldwin Insurance Group, Inc. 23.23 +4.74 (+25.64%)FIGS FIGS, Inc. 15.45 +2.98 (+23.90%)DELL Dell Technologies Inc. 148.08 +26.63 (+21.93%)PSKY Paramount Skydance Corporation 13.51 +2.33 (+20.84%)Top losersRUN Sunrun Inc. 13.25 -7.17 (-35.11%)FIGR Figure Technology Solutions, Inc. 25.28 -8.76 (-25.73%)CRWV CoreWeave, Inc. 79.56 -18.07 (-18.51%)ACA Arcosa, Inc. 107.48 -20.02 (-15.70%)TPC Tutor Perini Corporation 75.37 -14.01 (-15.67%)Most activeNVDA NVIDIA Corporation 177.19 -7.70 (-4.16%)NFLX Netflix, Inc. 96.24 +11.63 (+13.75%)SOFI SoFi Technologies, Inc. 17.76 -1.34 (-7.02%)PLUG Plug Power Inc. 1.7900 -0.1200 (-6.28%)NU Nu Holdings Ltd. 14.98 -0.08 (-0.53%)Top economic eventsEarnings eventsMy earnings eventsEarnings events