In it: "Most mortgages are now packaged by brokers, and nearly two in three mortgages are originated by nondepositories not covered by the CRA."
"nondepositories" and "originate" are key words here.
Banks, if they wanted FDIC insurance, discount rates, and an easier time with mergers, had to comply with CRA. Banks, and Freddie and Fannie bought mortgages. All were responsible for their pools of mortgages before, if not long after, being securitized. Mortgage brokers WERE NOT. They held onto stuff like mortgage servicing rights. The homeowner dealt with them.
You tell me: who other than Freddie or Fannie held most of the mortgages before being securitized? Banks. Big time, FDIC banks. Don't recall hearing about investment banks taking calls from brokers, either.
non-CRA facilities originated loans sold to CRA compliant banks
http://www.federalreserve.gov/newsevents/speech/Bernanke20070330a.htm
In it: "Most mortgages are now packaged by brokers, and nearly two in three mortgages are originated by nondepositories not covered by the CRA."
"nondepositories" and "originate" are key words here.
Banks, if they wanted FDIC insurance, discount rates, and an easier time with mergers, had to comply with CRA. Banks, and Freddie and Fannie bought mortgages. All were responsible for their pools of mortgages before, if not long after, being securitized. Mortgage brokers WERE NOT. They held onto stuff like mortgage servicing rights. The homeowner dealt with them.
You tell me: who other than Freddie or Fannie held most of the mortgages before being securitized? Banks. Big time, FDIC banks. Don't recall hearing about investment banks taking calls from brokers, either.