Fed is cautious on mortgage securities

City A.M. Reporter
THE Federal Reserve was yesterday playing down expectations that it would prop up the market for mortgage-backed securities.<br /><br />The preisdent of the New York Fed said it was still assessing whether or not to include residential mortgage-backed securities in its ambitious consumer lending programme.<br /><br />&ldquo;No decisions have been made yet,&rdquo; William Dudley said in response to a question from the audience at a financial industry conference in New York after giving a speech on the Term Asset-Backed Securities Loan Facility (Talf). &ldquo;We are still assessing if legacy Residential Mortgage-Backed Security (RMBS) in Talf is feasible.&rdquo;<br /><br />Dudley said the lending program could be opened to legacy RMBS later in the summer. So far, the Talf has been used to purchase securities backed by consumer loans.