The Fed Pulling Out of Mortgage Market… Or Is It?

This article out today shows Bernanke remains committed to withdrawing the Fed’s open-market purchases of mortgage-backed securities.  On the other hand, Freddie and Fannie, now have unlimited financial resources (backed by US government and your tax dollars) and the ability to take an “unlimited” amount of losses, is now going to buy up all mortgages it had previously sold to investors that are over 120 days delinquent.  So the government is not exactly dropping its support in the mortgage market.

-Billy Ray

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