Fintechs on the Firing Line

As we noted yesterday, the IMF’s financial-stability report includes a searing assessment of fintech risk.  In this report, we drill down into one of the study’s case studies, which assesses mortgage fintech and concludes that this business model poses a raft of risks to financial stability.  We note several methodological concerns with this conclusion, but it will nonetheless have significant bearing on what FSOC, FHFA, and Ginnie come to do about the nonbank business model.