The subdued level of mortgage purchase originations is particularly striking given the record low mortgage rates that have prevailed in recent years. The drop in originations has been most pronounced among borrowers with lower credit scores.
Please allow me to make one general remark: Strengthening loss absorbing capacity to facilitate restructuring or resolution processes is, of course, generally useful for all financial institutions. However, regulatory requirements tailored specifically to banks cannot, and should not, be superimposed on other financial market participants, since business models, risk profiles and resolution procedures are fundamentally different.