“We’ve had to recalibrate our business” Refinancing mortgages is a phenomenally profitable and nearly risk-free business for banks, and one of the few growth sectors that were actually spawned by the Fed’s herculean efforts to force down long-term interest rates through waves of quantitative easing. Banks went on a hiring binge to shuffle all this paper around and extract fees along the way before they’d dump most of these mortgages into the lap of government-owned and bailed-out Fannie Mae and Freddie Mac. And then they’d run.
via A Very Profitable Part Of Banking Goes Totally To Heck « naked capitalism.
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- Wells Fargo to cut 2,300 mortgage jobs as refinancing slows (ca.news.yahoo.com)
