led to a sharp contraction in mortgage company activity. in 2006, mortgage companies accounted for around 30 percent of originations ; by 2008, at the bottom of the housing crisis, this share had fallen to around 20 percent. in the past few years, the market share of mortgage companies has risen sharply, well surpassing their share before the housing crisis. today these firms originate about half of all mortgages, including more than 70 percent of those securitized through ginnie mae and the government - sponsored enterprises ( gses ) fannie mae and freddie mac. 1 see you suk kim, steven m. laufer, karen pence, richard stanton, and nancy wallace ( 2018 ), “ liquidity crises in the mortgage market, ” brookings papers on economic activity, spring, pp. 347 – 413, https : / / www. brookings. edu / wp - content / uploads / 2018 / 03 / kimetal _ text. pdf ; and laurie goodman, alanna mccargo, jim parrott, jun zhu, sheryl pardo, karan kaul, michael neal, jung hyun choi, linna zhu, sarah strochak, john walsh, caitlin young, daniel pang, alison rincon, and gideon berger ( 2020 ), housing finance at a glance : a monthly chartbook, october 2020 ( washington : urban institute, october 27 ), https : / / www. urban. org / sites / default / files / publication / 103123 / october - chartbook - 2020 _ 2. pdf. the expansion of mortgage companies in this market partly reflects a decision by many banks to exit that - 4nonbanks also service roughly three - fourths of mortgages securitized through ginnie mae and about one - half of those securitized through the gses. 2 although some mortgage companies specialize in origination or servicing, most large firms engage in both activities. the expanding presence of mortgage companies has brought benefits to consumers and the economy. among the benefits are increased competition and technological innovation. mortgage companies are generally able to react more nimbly to changes in market conditions and have been faster to deploy new technologies such as online mortgage origination platforms. but the rising market share of mortgage companies has also brought with it increased risks. i will focus here on the risks most relevant to financial stability. one major vulnerability of mortgage companies is liquidity — that is, their ability to finance their portfolio

##mensurate with their expected returns. we need catalytic capital to improve project bankability and crowd in private sector capital. blended finance is also about combining financing with capacity building, technology transfer, and institutional support, to reduce risk and enhance bankability. 1 / 4 bis - central bankers'speeches blended finance is not new but scaling it requires a fresh approach. about a month ago, the monetary authority of singapore ( mas ) held the inaugural transition finance towards net zero conference conference. the conference saw more than 500 leaders and experts from across the world – from industry, academia, governments, and multilateral development banks - discuss the nuts - and - bolts of what it takes for blended finance to scale. what were their key take - aways? one, greater capacity and expertise to prepare projects. this is critical at the early stages of project development, especially in developing economies. transition projects need to be well designed with clear targets and transparent metrics to draw private capital. two, better risk mitigation and risk transfer mechanisms. we need catalytic and concessional funding from the public sector, multilateral development banks, and philanthropic sources, to improve project bankability and crowd in additional multiples of private sector funding. this will mean re - looking the financing models and incentive structures of multilateral development banks. three, a more synergistic financial ecosystem. we need to recycle capital by taking loans off bank balance sheets and structuring them in a form that institutional investors can participate in. singapore is taking active steps to scale transition and blended finance. infrastructure asia, launched by mas and enterprise singapore, provides expertise in project scoping, shares best practices in project development, and facilitates infrastructure financing deals in the region. clifford capital, whose borrowings are guaranteed by the singapore government, provides debt financing to crowd in equity participation for infrastructure projects. pentagreen capital, a partnership between hsbc and temasek holdings, will deploy blended finance at scale to unlock marginally bankable projects in southeast asia. convergence, a global network for blended finance, has launched a s $ 5 million grant scheme supported by mas, which will fund feasibility studies and proof of concept work on innovative blended finance solutions in target sectors that are under - capitalised in asia. singapore is also partnering global efforts to promote transition and blended finance. the network of central banks and supervisors for greening the financial system ( ngfs ) has established a blended finance initiative, that will identify best practices and lessons from past case