My Real Estate Blog

Treasury to begin selling its remaining MBS portfolio

The U.S. Dept. of the Treasury recently announced that it plans to sell up to $10 billion in agency-guaranteed mortgage-backed securities (MBS) per month, subject to market conditions.
 
“We’re continuing to wind down the emergency programs that were put in place in 2008 and 2009 to help restore market stability, and the sale of these securities is consistent with that effort,” said Mary J. Miller, assistant secretary for financial markets. “We will exit this investment at a gradual and orderly pace to maximize the recovery of taxpayer dollars and help protect the process of repair of the housing finance market.”
 
Treasury acquired its portfolio of agency-guaranteed MBS under authority provided to it by Congress under the Housing and Economic Recovery Act of 2008. These purchases of agency-guaranteed MBS helped preserve access to mortgage credit and promote economic stability during a period of unprecedented market stress and volatility.

Reprinted From C.A.R.