Investors Advised to Avoid Lower Coupon Ginnie IOs, Too Many Modified Loans in New Pools, Analysts Say
September 17, 2010
The growing number of modified mortgage loans reissued into new, lower coupon pools and high recidivism rates on modified FHA and VA loans have prompted securities analysts to warn potential investors away from lower coupon Ginnie Mae IOs. The massive amount of buyouts from Ginnie Mae pools seen over the last 6 to 12 months are being...