these mbs tranches (bought using qe) are held outright by the nyfed (nyfed acts as both note holder and mbs investor, multiple cusips in each tranche, hundreds of properties in each cusip). if the mortgagor defaults (which 99% of them do/already have, which is why the nyfed bought them from their primary dealers in the first place), the deed then belongs to the fed, who then either sits on the property (affecting housing values and skewing the housing market) or gives it to one of its triparty dealers to be rented (reits) or to be picked over in foreclosure court. the nyfed now owns ~30% of all mortgaged homes, this was illegal before 2008. the primary dealers that own the nyfed and the financial firms they choose to fund and that also make real estate purchases for the nyfed (i.e. blackrock, blackstone, carlyle group, american homes 4 rent) want to own all the properties, then the us government can become their customer through housing assistance; in this way, they form a closed loop of both supplier and customer, keeping the general public from owning any property, while profiting. under the guise of covid, the nyfed and its ilk bought single family homes (mbs) and commercial mortgage-backed securities (cmbs), too, such as apartment buildings, trailer parks, nursing homes, offices, strip malls, warehouses, student housing, and rv parks and are keeping these real assets in their privately-incorporated llcs (aka special purpose vehicles (spvs)). update pic related to ~$2.4t the purchase of these properties by the nyfed causes false scarcity and false demand, which drive up housing (and rental) prices and prevents young and upcoming families from buying, fixing up and investing in these properties, as well as stopping new families from putting down roots in a community.
United States