indio007 | Off-Topic RANT: Still confused about the 2008 Mortgage crisis? @indio007 | Uploaded August 2019 | Updated October 2024, 8 hours ago.
Still confused about the 2008 Mortgage crisis? Here's what really happened.
The Company I couldn't think of was Countrywide BTW.
Broadcast Live on
the 24/7 Flat Earth Discord.
INVITE
discord.gg/pNyVa2Z
The FED can use residential mortgages as collateral to print new FRN's.
Section 16 of the Federal Reserve Act
is titled
"Note Issues". It was amended in 1999 to include residential mortgages as collateral for NEW Federal Reserve Note issuance. Previously it was restricted to gold, gold certificates, SDRs, and Treasuries.
Public Law 106–122
106th Congress
An Act
To amend the Federal Reserve Act to broaden the range of discount window loans which may be used as collateral for Federal reserve notes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That the
third sentence of the second undesignated paragraph of section
16 of the Federal Reserve Act (12 U.S.C. 412) is amended by
striking ‘‘acceptances acquired under the provisions of section 13
of this Act’’ and inserting ‘‘acceptances acquired under section 10A,10B, 13, or 13A of this Act’’.
Approved December 6, 1999.
Section 10B of the Federal Reserve Act
Notwithstanding the foregoing, any Federal Reserve bank, under rules and regulations prescribed by the Board of Governors of the Federal Reserve System, may make advances to any member bank on its time notes having such maturities as the Board may prescribe and which are secured by mortgage loans covering a one-to-four family residence. Such advances shall bear interest at a rate equal to the lowest discount rate in effect at such Federal Reserve bank on the date of such note.
GAZILLION CITATIONS ABOUT NEGOTIABILITY OF MORTGAGES AND NOTES AND HOW IT APPLIES TO FINANCIAL CRISIS
Whitman, Dale A. "How Negotiability Has Fouled Up the Secondary Mortgage Market, and What To Do About It." Pepp. L. Rev. 37 (2009): 737.
scholar.google.com/scholar?rlz=1C1CHBF_enUS816US816&um=1&ie=UTF-8&lr&cites=3242934261886856606
Still confused about the 2008 Mortgage crisis? Here's what really happened.
The Company I couldn't think of was Countrywide BTW.
Broadcast Live on
the 24/7 Flat Earth Discord.
INVITE
discord.gg/pNyVa2Z
The FED can use residential mortgages as collateral to print new FRN's.
Section 16 of the Federal Reserve Act
is titled
"Note Issues". It was amended in 1999 to include residential mortgages as collateral for NEW Federal Reserve Note issuance. Previously it was restricted to gold, gold certificates, SDRs, and Treasuries.
Public Law 106–122
106th Congress
An Act
To amend the Federal Reserve Act to broaden the range of discount window loans which may be used as collateral for Federal reserve notes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That the
third sentence of the second undesignated paragraph of section
16 of the Federal Reserve Act (12 U.S.C. 412) is amended by
striking ‘‘acceptances acquired under the provisions of section 13
of this Act’’ and inserting ‘‘acceptances acquired under section 10A,10B, 13, or 13A of this Act’’.
Approved December 6, 1999.
Section 10B of the Federal Reserve Act
Notwithstanding the foregoing, any Federal Reserve bank, under rules and regulations prescribed by the Board of Governors of the Federal Reserve System, may make advances to any member bank on its time notes having such maturities as the Board may prescribe and which are secured by mortgage loans covering a one-to-four family residence. Such advances shall bear interest at a rate equal to the lowest discount rate in effect at such Federal Reserve bank on the date of such note.
GAZILLION CITATIONS ABOUT NEGOTIABILITY OF MORTGAGES AND NOTES AND HOW IT APPLIES TO FINANCIAL CRISIS
Whitman, Dale A. "How Negotiability Has Fouled Up the Secondary Mortgage Market, and What To Do About It." Pepp. L. Rev. 37 (2009): 737.
scholar.google.com/scholar?rlz=1C1CHBF_enUS816US816&um=1&ie=UTF-8&lr&cites=3242934261886856606
