The problem of dealers not delivering agency mortgage-backed securities continues to escalate even as talk of hefty penalties to offenders picks up steam. The proper settlement of bond purchases is key to maintaining the liquidity of the $5trn agency mortgage world. This ensures that bonds are bought and sold without any disruption, and signals smooth functioning of the market. The problem shouldn’t affect mortgage rates that homeowners pay. The amount of these securities that dealers failed to deliver to investors who had bought them again rose to a high of $132bn last week.
Fees loom as dealers skip out on mortgage-bond deliveries
Most Popular Articles
Latest Articles
Did lower mortgage rates slow housing inventory growth?
After two weeks of significant increases, my model for inventory growth with higher mortgage rates came crashing down last week.
-
Labor market report is good news for mortgage rates
-
Virginia Realtors: Zillow’s touring agreement may not be legal
-
Low inventory creates challenging conditions in North Carolina’s housing market
-
Tri-state area housing shortage could cost the region economically
-
Remote reverse mortgage counseling now permanently permitted in Massachusetts