Mortgage Market Nearly Crashed in Early COVID-19 Days
Orange County Register, Aug. 26, 2021–Jeff Lazerson
At 9 p.m. Saturday, March 21, Mortgage Bankers Association President Robert Broeksmit sent an email to Federal Reserve Chairman Jerome Powell and then-Treasury Secretary Steven Mnuchin warning that the mortgage market would shut down the following Monday if Feds didn’t announce plans to start buying mortgage-backed securities. On the next Monday morning, the Fed announced it would indeed buy enough purchase mortgage-backed securities to ensure the market functioned smoothly. The market did not crash.