These market developments have resulted in the oversight of mortgage lending extending beyond the federal banking agencies, and this underscores the importance of collaborating with the state banking agencies and other organizations to address concerns in the subprime mortgage market.
Various outreach and research efforts have revealed the value of increasing the scrutiny of these lenders, to deepen our understanding of their policies and practices. To this end--and to take advantage of the dual-supervisory roles of federal and state agencies--we have launched a cooperative pilot project to conduct reviews of non-depository lenders with significant subprime mortgage operations.