That’s maybe half of existing mortgages but the problem has been that banks sell to Freddie to get cash to loan. Well, loan demand was incredibly low. So they b

That’s maybe half of existing mortgages but the problem has been that banks sell to Freddie to get cash to loan. Well, loan demand was incredibly low. So they bought bonds and held onto mortgages. Also keep in mind many mortgages are non-conforming so Freddie can’t buy them.