Replies to post #513176 on Mr Cooper Group Inc (COOP)

[ron_66271]

FED, QE-Unwind

FED, QE-Unwind

Mar. 3, 2018

http://www.businessinsider.com/fed-plan-to-unwind-its-balance-sheet-didnt-skip-a-beat-2018-3

During QE, the Fed acquired Treasury securities and mortgage-backed securities (MBS) guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. During the QE-Unwind, the Fed is shedding those securities. According to its plan, announced last September, the Fed would reduce its holdings of Treasuries and MBS by no more than:

$10 billion a month in Q3 2017.
$20 billion a month in Q1 2018
$30 billion a month in Q2 2018
$40 billion a month in Q3 2018
$50 billion a month in Q4 2018 and continue at this pace.

This would shrink the balance of Treasuries and MBS by up to $420 billion in 2018, by up to an additional $600 billion in 2019 and every year going forward until the Fed decides that the balance sheet has been "normalized" enough — or until something big breaks.

For February, the plan called for shedding up to $20 billion in securities: $12 billion in Treasuries and $8 billion in MBS.

More reading in the link provided.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=139235102

and;

What Happened to the Other 3/4ths?

"Pg. 116 –
From 2000 to 2007, Washington Mutual and Long Beach securitized at least $77 billion in subprime and home equity loans. WaMu also sold or securitized at least $115 billion in Option ARM loans. Between 2000 and 2008, Washington Mutual sold over $500 billion in loans to Fannie Mae and Freddie Mac, accounting for more than a quarter of every dollar in loans WaMu originated."


$500 billion in loans sold to Fannie Mae and Freddie Mac is more than 1/4th of loans WaMu originated.

What happened to the Other 3/4th of loans WaMu originated?

~ $1,500-ish Billion?

~ $1.5T

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141063937