Stoked by government efforts to revive housing, sales of mortgage-backed securities rose in November to the highest level in nearly 3 1/2 years.
Nearly $176 billion in bonds backed by fixed-rate home loans were issued in November, up from $132 billion in October and the most since $229 billion were issued in June 2009, according to a report Monday in MortgageDaily.com, which cited the data firm eMBS Inc.
The mortgage bonds were backed by the Federal National Mortgage Assn., or Fannie Mae; the Federal Home Loan Mortgage Corp., or Freddie Mac; and the Government National Mortgage Assn., or Ginnie Mae.
The market for Wall Street's private mortgage bonds imploded during the financial crisis, as high-risk loans defaulted and home prices plunged. The collapse wiped out or severely wounded onetime subprime and pick-a-pay home loan specialists such as Ameriquest Mortgage Co. of Orange and Calabasas-based Countrywide Financial Corp.