Banks Say Goodbye To Mortgages

Neuberger Berman
3.16K Followers

Summary

  • New technologies have enabled nimble financial-technology companies and other non-banks to enter the market.
  • Mortgage banking has become less profitable for banks due to onerous and restrictive origination and servicing rules, as well as higher capital requirements.
  • If Wells and JPM, now with a combined $5.7 trillion in assets, do pull back from the mortgage market, lower-income borrowers with fewer funding options could suffer disproportionally in a recession.

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By Andrew C. Arbesman, CFA, CPA

Big banks’ retreat from the mortgage market could have negative economic and social consequences.

After two prosperous years since the COVID-19 pandemic struck, banks are beating a retreat from the mortgage market. Those moves

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3.16K Followers
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 23 countries, Neuberger Berman’s team is more than 2,100 professionals. For five consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). Tenured, stable and long-term in focus, the firm has built a diverse team of individuals united in their commitment to delivering compelling investment results for our clients over the long term. That commitment includes active consideration of environmental, social and governance factors. The firm manages $323 billion in client assets as of March 31, 2019. For more information, please visit our website at www.nb.com.For important disclosures: https://www.nb.com/disclosure-global-communications  Contact Us: Advisor Solutions (877) 628-2583 advisor@nb.com RIA & Family Office (888) 556-9030 riadesk@nb.com

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