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In addition, balloon-payment mortgages — in which a large balance is due at the end of the loan's term — will be treated as qualified mortgages when they are originated and held in portfolio by community-based lenders in underserved areas.
"This option is meant to preserve access to credit for consumers located in rural or underserved areas where creditors may originate balloon loans to hedge against interest rate risk for loans held in portfolio," the Fed said in a statement.
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Or has something fundamental happened in the way gold is held in portfolios?
According to recent research by NASDAQ OMX, more than one-third of capital invested by asset managers in publicly-traded companies is currently held in portfolios for at least five years – a key measure for long-term investing – the highest level since the financial crisis.
First, as I stated earlier, government is guaranteeing the vast majority of loans held in portfolios now by Fannie Mae, Freddie Mac and the FHA.
Also, the federal government is guaranteeing the vast majority of loans held in portfolios now by Fannie Mae, Freddie Mac and the FHA.
"In our group, we use ETFs as a core holding in portfolios and then try to overweight strong sectors with individual stocks," Ghodsi says.
Many of those held in the portfolio are collateralised bonds, secured against the assets of the company issuing them.
Mutual funds calculate their share prices, known as net asset values, at 4 p.m. based on the value of the securities held in the portfolio.
The only assets held in its portfolio as of Wednesday were United States government agency triple-A rated residential mortgage-backed securities.
An amount equivalent to the World Bank's capital is held in a portfolio of government bonds and time deposits.
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