The nonbank mortgage sector should be acted on by Congress, says US Treasury's Yellen

Financial Stability Oversight Council was created after the 2007-2009 financial crisis. Regulators are moving to cover what they say is a gap in their power to address risk in what is now a large and growing majority of the mortgage market. The council voted unanimously to approve publishing a report and related recommendations on the issue.

U.S. Treasury Secretary Janet Yellen calls for Congress to give regulators more power to oversee the growing nonbank mortgage industry. Yellen was speaking during a meeting of the Financial Stability Oversight Council, a regulatory body created following the 2009-07 financial crisis. She said nonbank mortgages present unique risks to financial stability.