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> These are all in bonds paying 3% or less. Who is holding these? Fannie Mae and Freddie Mac. Most mortgage originators packaged up the mortgages and sold them
by blindriver 4y ago
> These are all in bonds paying 3% or less. Who is holding these?
Fannie Mae and Freddie Mac. Most mortgage originators packaged up the mortgages and sold them immediately to the government.
- bequanna 4y agoThey didn’t “sell them to the government”. However, the Fed was actually a large purchaser of MBS if that is what you’re referring to.
- blindriver 4y agoOkay it's technically not a part of the government, but it's a Government Sponsored Entity with public ownership. All mortgages bought by them have an implied guarantee by the US government. So they did sell them to "a government-sponsored entity and the US government has an implied guarantee to pay any defaults."
- Kon-Peki 4y agoYep, my 2021 mortgage was sold before the first payment.