2008-02-08 — reuters.com
The company would package jumbo loans above the $417,000 conforming limit outside the so-called "to-be-announced," or TBA, bond market if Congress decides to approve its ability to purchase the loans as part of an economic stimulus plan, Mark Hanson, a vice president of mortgage funding at Freddie Mac, told Reuters.
"[Mixing jumbo and non-jumbo] would have the effect of raising rates to borrowers, which is not the purpose of the stimulus plan," Hanson said while at the American Securitization Forum meeting in Las Vegas. "We would fence it off" from the TBA market, he said.
Risky assets isolated. How novel. But happily, this would make the stimulus proposal somewhat less a bail-out for the rich.
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