MBS market, it will be a big hit to bank if mortgage business is opened to other financial companies. The mortgage company will have resources to raise money and more competition will lower mortgage rate. I was told 5 year Fixed rate in China is 8% which is far higher than overseas. It will be good for investors as I believe the return will be fat better than stock market return. At same time it will deal a big blow to banks. So I am sure banks will fight to keep mortgage business only to themselves.
