What's it going to take to get banks back into mortgages?

Mayer Brown partner Matthew Bisanz is quoted in this article discussing banks re-entering the mortgage market. Experts say even if regulators recalibrate capital standards, structural and competitive realities that did not exist before 2008 are the biggest drivers in their dwindling market share in mortgage origination and servicing. Nonbanks now dominate the sector, aided by leaner cost structures that are built for rate volatility — advantages that banks will have a hard time imitating. "I think these changes are a welcome and a necessary condition to banks participating more in the mortgage market, though I'm not sure if they on their own would be sufficient," commented Matthew Bisanz.