Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by selimnairb on Tuesday March 21, 2023 @10:30AM
(#35246704)
Why do we need the mortgage industry, which charges a premium over the prime interest rate? Why can’t the Fed lend directly to borrowers? Why do we need intermediaries in the provision of mortgages?
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Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by dragonwriter on Tuesday March 21, 2023 @10:36AM
(#35246809)
Mortgages have higher risk and servicing costs than the lending done at prime, so they are going to be done at a premium to it no matter who does it (unless it is yet another government subsidy to homebuyers at the expense of renters.)
Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by ameister14 on Tuesday March 21, 2023 @10:34AM
(#35246775)
Because the Fed is not equipped to evaluate risk on that scale.