JPMorgan Chase and Company is preparing to sell a group of mortgage-backed securities worth nearly 2 billion dollars, the company confirmed to MReport. This credit risk transfer is expected to reduce the risk borne by U.S. taxpayers and bring more private capital back into the mortgage market. In addition, this transaction will help restore private-sector securitization, a necessary component of the broader recovery of the housing system in the U.S.
A poll released by U.S. Mortgage Insurers found that 49 percent of Americans believe that the government is not doing enough to prevent another taxpayer-funded bailout of Fannie Mae and Freddie Mac. Likewise, 48 percent believe that the private sector should bear the risk for the responsibility on mortgage loans that go bad. Nineteen percent said that borrowers should shoulder the losses, and 12 percent said it should be the government.
In his first appearance before the House Financial Services Committee since September 29th, Consumer Financial Protection Bureau Director Richard Cordray sat before the committee to defend his and the Bureau’s recent actions. The Director named many of the Bureau’s accomplishments in his opening statement, but Republicans—and even some Democrats on the committee were skeptical that the Bureau's actions are fulfilling its mission to protect consumers.