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Re: action8101 post# 629708

Saturday, 08/29/2020 11:41:44 PM

Saturday, August 29, 2020 11:41:44 PM

Post# of 800481
Sorry, I should have said it was the RETAINED Mortgage Portfolio and that may have been confusing.

As you probably recall, it was "yuge" and more importantly for the companies, it generated over 100bps of Net Interest Income per year!

But that was scuttled in 08, and has been coming down to the now low levels only necessary to facilitate their MBS book of business.

It's been 12 years, and I forgot WHY the retained mortgage portfolio was such a problem. There is interest rate risk, but any idea what the other problems were?