Mortgage companies could intensify the next recession, US officials warn

(CNN)– U.S. regulators are warning that the mortgage industry could intensify the next recession.

The Financial Stability Oversight Council says non-bank mortgage companies like Rocket Mortgage, PennyMac, and Mr. Cooper have an increasing influence in the industry.

Unlike traditional banks, these companies aren’t heavily regulated and are vulnerable to swings in the market.

They also don’t have stable deposits to rely on as a safety net. Federal regulators are calling on states and congress to address these risks.