The Great Recession saw the biggest backers of residential mortgages collapse. Today, nearly 10 years after the crash, private buyers are buying less than 10 percent of mortgages than a decade ago, MarketWatch reports.
“As a result, government-sponsored enterprises have to buy up the majority of the loans to create liquidity in the market,” writes Daniel Goldstein, personal finance reporter for MarketWatch.
“According to the Housing Finance Policy Center of the Urban Institute in Washington, D.C., the private label securitization market was valued at $718 billion in 2007 and plunged to just $59 billion in 2008,” he adds. “It is valued at just above $64 billion today.”