Shadow Banking Now Dominates The Mortgage Market, Edging Out Wall Street Giants

Ever since subprime mortgages helped torpedo the American financial system, a quiet revolution has taken place in the home loan industry. The handful of large banks that once dominated the field have steadily retreated from making mortgages, ceding their market share to so-called shadow banks, less tightly regulated lenders that hold no deposits on their books--and the trend has lawmakers and regulators worried.