Buybacks continue on, from both the agencies and large investors. Firms will continue to deal with this (and reserving for repurchase requests) for years to come. A possible requirement to hold up to 5% in capital of any loan securitization has been mentioned, but seriously, not even Bank of America or Wells Fargo could handle this one, much less a small mortgage bank trying to hedge. Depending on geographic area, some mortgage banks are anxiously awaiting the return of an adequately priced and risk-weighted jumbo market, and there have been some steps in that direction lately.

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