Wall Street hedge funds and other institutional buyers are buying homes like crazy in the US. There is fear that these funds will liquidate their holdings at some point in the future if some external event happens that might crash the housing market. This is similar to how foreclosures in the last housing crash all hit the market at the same time. There is little benefit for Wall Street to plotting to crash the housing market in 2022.
Todd and Oana, talk about their past experience dealing with banks like Fannie Mae and Freddie Mac and things they did to soften the previous housing market crash. Wall Street mortgage firms suffered serious losses because of massive foreclosures and plummeting home prices. Have they learned from their mistakes and will they coordinate to avoid another real estate market crash?