(RECAP: Nonbank’s share of Federal Housing Administration-backed mortgages crossed $1 trillion for the first time in November 2016, according to an article in The Wall Street Journal. The news, while positive for nonbanks, is causing some in the industry to question the consequences nonbanks face if the industry undergoes any future stress. A study from 2015 by a senior fellow and a researcher at the Mossavar-Rahmani Center for Business and Government at Harvard’s Kennedy School posted that the nonbank market share of agency buy mortgage originations was growing at an astronomical pace, moving from 27% in mid-2012 to 48% in late 2014. The article gave an update on the situation, stating that in the first three quarters of 2016, banks accounted for 9% of mortgage dollars originated by the FHA’s top 50 lenders, versus 62% for all of 2010.)

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