The complication of shifting from cash window deliveries to MBS swaps is going to cost lenders money whether they’re big or small.

Last March, major dealers simply didn’t have the liquidity to accommodate the volume of agency MBS being sold. Would a clearing facility speed up settlement enough to prevent a similar market failure in the future?

Securitizing mortgages can be expensive and recent PSPA changes might force the hand of smaller lenders, at least that’s how some trade groups see it. (Includes three data charts.)