As the paintball game speeds up and all major players dodge faster to avoid designation as bearers of systemic risk, let’s not get fixated on “too big to fail” as the past or future cause of the disaster. There is something worse than “too big to fail,” namely, “too few to compete.” The rating agencies, for instance, were not too big to fail — but they were too few to compete. The same is true for mortgage servicing.
A problem of too few to compete in mortgage servicing
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U.S. mortgage delinquency rates remain near historic lows: CoreLogic
The share of mortgages that were six months or more past due fell to its lowest level in 15 years in February