The recent IPO of nonprime lender Velocity Financial should pave the way for other like-minded deals. Right? But not so fast. The stock market can be an unforgiving place.

Some of the largest home lenders reported fourth-quarter results this week and the writing is on the wall: Home lending in the final three months of the year may have eclipsed a very good third quarter.

To make sure property markets aren’t creating excessive systemic risk, it’s important for regulators to look at the issue broadly, said FHFA’s Mark Calabria. That’s where an activities-based approach is critical.