He also took issue with suggestions that firms like his are lightly regulated, noting that Quicken is subject to oversight by 50 separate state supervisors as well as by federal agencies such as the Consumer Financial Protection Bureau.
Diminish Risks
There are some efforts underway to diminish the potential dangers in the mortgage market.
Ginnie Mae has tightened its liquidity and capital requirements for the financiers it deals with. It’s also asked for industry feedback on a potential stress testing framework.
The Conference of State Bank Supervisors is looking to establish uniform prudential standards for the non-banks that its members oversee.
“We’re not chicken little saying the sky is falling,” the conference’s Cross said. “But history has taught us that when we’re not paying attention to growing risks bad things can happen.”
This article was provided by Bloomberg News.