[roflyear]

Who is going to issue mortgages, if not banks?

[alxmng]

Banks can issue mortgages without fractional banking… Investors pool capital and start a bank. The bank loans money for homes and makes a profit from interest.

[roflyear]

I suppose, but wouldn't really need a bank for that. And you need a lot of money - more money I'd wager than investors will want to pool together.

But, I guess if your goal is less people being able to get mortgages and loans, maybe it will be a good thing!

[hd95489]

Banks only do community and jumbo in the us. Most mortgages are owned by the federal government

[roflyear]

The federal government originates mortgages? TIL

[alxmng]

Apparently the Fed owns 1/3 of all mortgage bonds.

[alxmng]

https://mishtalk.com/economics/the-fed-now-owns-nearly-one-t...

… and ~25% of the Feds entire balance sheet is mortgage securities.

[roflyear]

They don't originate those loans.