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Yellen urges action to curb US mortgage market risks

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US Treasury Secretary Janet Yellen flagged risks posed in the mortgage market Friday, as regulators released recommendations to address the sector's vulnerabilities. On Friday, Yellen said further action is needed to promote sound operations and address liquidity and other risks.

US Secretary of the Treasury Janet Yellen said vulnerabilities of nonbank mortgage companies can undermine financial stability. Photo: Anna Moneymaker / GETTY IMAGES NORTH AMERICA/Getty Images via AFP/FileUS Treasury Secretary Janet Yellen flagged risks posed in the mortgage market Friday, as regulators released recommendations to address the sector's vulnerabilities.

On Friday, Yellen said further action is needed to promote sound operations and address liquidity and other risks. Widespread disruption in the mortgage market, Yellen noted, could"lead to a temporary restriction of mortgage credit," making credit harder to obtain for certain borrowers.

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