TightWind is written by Kyle Baxter. Stay Hungry. Stay Foolish.

The Federal Reserve Reserve is purchasing more than half of all mortgage-backed securities issues by the GSEs:

So much for shifting the US mortgage business into the private markets. Going forward the Fed will be a buyer of more than half of all new agency MBS issued. At this point one might as well make the GSEs part of the Fed or give the central bank a mortgage origination capability.

That’s lovely.