Bernanke fires back on QE3, amid criticism from Romney and others

New York /
Oct.October 02, 2012 11:00 AM

Banks have reaped enormous profits since the Federal Reserve announced its third and latest round of quantitative easing last month  — speaking debate over the Fed’s recent agreement to purchase $40 billion in mortgage bonds a month.

Fed Chairman Ben Bernanke, who negotiated QE3, defended his plan on Monday following critiques from Gov. Mitt Romney and others that the Fed was keeping interest rates “artificially low. ” Bernanke said that QE3 would not result in long-term inflation.

Mortgage rates did fall last week to a record low, but critics point to the rate of profit on the loans, which is at a record high.

“For banks which are mortgage originators this was some of the best news they could have possibly heard,” Deutsche Bank mortgage specialist Steven Abrahams told The Financial Times. “They will continue originating loans and selling them into the market at a significant premium.” [FT]


Related Articles

arrow_forward_ios
1440 Broadway and One Park Avenue (Google Maps, Vornado)
These were the largest Manhattan real estate loans in March
These were the largest Manhattan real estate loans in March
Better CEO Vishal Garg and SoftBank CEO Masayoshi Son (Better.com, Getty)
Better.com lands $500M investment from SoftBank
Better.com lands $500M investment from SoftBank
An index tracking applications for mortgages to purchase homes decreased 5 percent. (iStock)
Frenzy ending? Mortgage requests fall 5%
Frenzy ending? Mortgage requests fall 5%
(iStock/Illustration by Kevin Rebong for The Real Deal)
March madness: Homes sold faster than ever last month
March madness: Homes sold faster than ever last month
February were 10.4 percent higher than last year. (iStock)
Home price growth hits 15-year high
Home price growth hits 15-year high
(iStock/Illustration by Kevin Rebong for The Real Deal)
Foreclosures and evictions could be halted for rest of 2021
Foreclosures and evictions could be halted for rest of 2021
CFPB acting director Dave Uejio (CFPB, iStock)
Mortgage lenders must prevent “tidal wave” of avoidable foreclosures: CFPB
Mortgage lenders must prevent “tidal wave” of avoidable foreclosures: CFPB
Overall, mortgage credit availability is at its lowest level since 2014. (iStock)
Mortgage lenders play hard-to-get
Mortgage lenders play hard-to-get
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...