The Federal Reserve System alone, of course, cannot resolve all of the problems in the marketplace, but we have responded thus far through our regulatory, supervisory, research, and community affairs functions. Regulation and supervision As part of a periodic review of our regulations under HOEPA, the Federal Reserve Board in 2006 began a systematic look at changes in the mortgage industry.
The second is managing the implications for global markets and investment patterns. The first of the challenges is one that faces any country moving from a highly constrained system to a more liberal system. As the constraints are lifted, people adjust their portfolios in ways they previously could not.