Posted To: Pipeline Press

Remember when all we had to worry about was Amazon taking over mortgage banking? The sun hits different here in March – see joke at bottom. (Thirty days hath September, April, June, and November. All the rest have thirty-one except March which has 8,000.) Unintended consequences: It’s a fascinating case study, among millions of others, that the Federal Reserve stepped in to buy Agency MBS in an attempt to create price stability but induced a huge rally in MBS (not rate sheets!), causing even more margin calls for lenders as their positions used for hedging increase in price and their mark-to-markets deteriorate. Talk is that the Fed is scaling MBS purchases back, helping lenders reduce renegotiations, increase pull through, and hopefully cause less of a price rally thus reducing…(read more)

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Source: Mortgage News Daily