Reviving the Secondary Market
Mortgage finance experts, regulators, lawmakers and industry groups are wrestling with the challenge of remaking the secondary mortgage market into a sustainable model for the long term. By Robert Stowe England Mortgage Banking, April 2009 For printable copy, click this link: http://robertstoweengland.com/documents/RevivingTheSecondary.pdf Trust -- once it's lost, how do you get it back? For the world of mortgage finance, that is the paramount question. It is essential to the success of any efforts at reviving the secondary mortgage market on a sustainable basis with and without a federal government role. Restored trust is essential in the near and mid-term to restarting the private-label mortgage-backed securities (MBS) market, which collapsed in August 2007. That is the part of the secondary market reserved for jumbo prime, alternative-A and subprime loans -- the loan products that made up the once formidable private-label MBS market. And restored trust is essential in the longer...