What’s Behind the Non-Bank Mortgage Boom? Marshall Lux Robert Greene June 2015 M-RCBG Associate Working Paper Series | No. 42 The views expressed in the M-RCBG Fellows and Graduate Student Research Paper Series are those of the author(s) and do not necessarily reflect those of the Mossavar-Rahmani Center for Business & Government or of Harvard University. The papers in this series have not undergone formal review and approval; they are presented to elicit feedback and to encourage debate on important public policy challenges. Copyright belongs to the author(s). Papers may be downloaded for personal use only. Mossavar-Rahmani Center for Business & Government Weil Hall | Harvard Kennedy School | www.hks.harvard.edu/mrcbg What’s Behind the Non-Bank Mortgage Boom? June 1, 2015 Marshall Lux Senior Fellow, Mossavar-Rahmani Center for Business and Government, John F. Kennedy School of Government, Harvard University Senior Advisor, The Boston Consulting Group
[email protected] Robert Greene Research Assistant, Mossavar-Rahmani Center for Business and Government, John F. Kennedy School of Government, Harvard University Master in Public Policy candidate, John F. Kennedy School of Government, Harvard University
[email protected] Abstract Mortgages constitute a large, complex, and controversial market in the United States, shaped largely by federal policymaking. Since 2010, the role of non-banks – a term commonly used to define firms unassociated with a depository institution – in the overall mortgage market has grown handedly. In 2014, non-banks accounted for over 40 percent of total originations in terms of dollar volume versus 12 percent in 2010.