By having a common set of standards for the mortgage servicing industry, the financial regulatory agencies will emphasize the importance of servicing practices that promote the best interests of borrowers and the broader housing market. Let me turn finally to mortgage credit.
No one wants to see a return to the loose lending standards that prevailed in the run-up to the crisis, but households and the economy will benefit if we can foster sustainable homeownership with an increase in responsible lending. The Federal Reserve, in coordination with other agencies, has recently published two notices of proposed rulemaking that will affect the provision of mortgage credit.