(Bloomberg) — Banks and other lenders have found a way to potentially make billions of dollars from the coronavirus-fueled upheaval in the U.S. mortgage market — yet it risks burning bond investors in the process.The earnings would come from an unanticipated side-effect of Congress’ decision in March to allow homeowners affected by the pandemic to delay loan payments for as long as a year, combined with arcane regulations governing mortgage-backed securities.The net result is that lenders would get the chance to buy tens of billions of dollars in mortgages out of bonds for less than their current market value — …read more
Source:: Yahoo Finance
