As we calculate it, the Fed today committed to purchase around 60% of monthly agency production until the economy perks up. We hope all this volume doesn’t come from refis without any stimulus effect – the Fed’s huge MBS holdings to date have done little to promote housing-market recovery. But, for as long as the Fed gobbles GSE paper, Fannie and Freddie are safe from any fundamental restructuring not forced on them by outside market events.
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