Mortgage Bankers Facing Wave of Margin Calls
Recent intervention by the Federal Reserve is now triggering a wave of margin calls by broker-dealers who sold hedges to mortgage bankers, according to a letter the Mortgage Bankers Association (MBA) sent regulators.
The main issue, according to the letter, which was reported on by multiple media outlets, is the $183 billion in mortgage-backed securities purchased by the Federal Reserve last week as part of the agency's quantitative easing program.
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Source Fool.com
