Tuesday, March 10, 2009


Awhile back I met someone in the mortgage broker business who had, unsurprisingly, seen his business decline and seen many of his coworkers laid off. At the time he told me, ominously, that all the action had just moved to the FHLB system...
The Federal Home Loan Bank of Seattle said it has fallen short of one of its capital requirements as a result of write-downs on mortgage-backed securities. Investments in mortgage securities that were packaged by Wall Street during the housing boom are straining the finances of several of the 12 regional home-loan banks, a major source of funding for thousands of banks across the country.