Mortgage Bankers Warn The Fed Is Causing A Mortgage Crisis As Lenders Plead For A Bailout
The Mortgage lenders are begging for a bailout due to the Fed buying MBS as a part of their relief for the Big Banks. Now the MBA is asking for the Fed to stop to avoid a total systemic collapse in the US housing market. We have already seen a lot of trouble brewing for secondary lenders as liquidity has been redirected as a result of front running the feds purchases. This has helped to prop up the big banks and has lead to a very bad situation for many lenders. With the US banking system already showing cracks such as the Capital One bailout and the crashing energy prices, it remains unclear what is the breaking point.