fomc: Mortgage securities purchasing by the Fed under discussion - 09/04/09 11:53 AM
The Federal Reserve has become the bedrock of the mortgage market, whether it likes it or not. It's buying just about all of the Fannie Mae and Freddie Mac paper, the conforming kind, to provide badly needed liquidity in the secondary market. Private investors are almost non-existent over there; for lack of funds to participate, for still harboring loads of toxic home loan securities in their books or just being wary about getting back into the recently-devastated mortgage bond business.
In the Fed's August Federal Open Market Committee, or FOMC, meeting one of the topics around the table touched on the … (9 comments)