Where are home prices going? Is a recession going to lead to higher delinquencies? Mortgage industry participants are having a hard time answering these questions.
Investors that once focused on lower tranches of non-agency MBS are shifting up in credit, seeing just as strong returns from AAA-rated tranches with fewer risks. Investors in agency MBS are also changing strategies as interest rates rise.
The most popular option is when another veteran assumes the VA loan and trades the benefit eligibility, said John Bell, executive director of VA’s Loan Guaranty Service.
Lenders want FHA to increase the limit on fees they can charge for processing an assumable mortgage, a product expected to gain popularity in the coming months.
MBA punts on recession forecast; interest rates on mortgages expected to decline; Flagstar merger dragging on; homeowners want mortgage financing for energy improvements.