Capitol Federal Savings Bank took a loss of about $200 million on the sale of $1.3 billion of securities (largely MBS) with low interest rates. The bank reinvested the proceeds in higher-yielding assets and paid off some debts. Pacific Premier Bank made a similar move this week.
MBS creation is weak thanks to high mortgage rates and anemic refis but one positive for the market is the October increase in agency trading volumes. A real sign of hope or a head fake?
VineBrook Homes is set to issue its first single-family rental securitization. Issuance in the sector ticked up in the third quarter after declining for more than a year.
The Federal Reserve’s push to run MBS off of its balance sheet may cause interest rates to stay high even after quantitative tightening measures cease.
Hildene Capital Management formed a “strategic relationship” with CrossCountry Mortgage in late 2022, with the lender delivering non-QMs to the asset manager for securitization.
With mortgage rates declining of late, sellers of non-QM collateral might see better prices in the secondary market. Then again, the optimism may be too early, one trader advised.
Securitization tied to financing acquisitions of MSRs dwindled in the past year, but banks are still providing financing to nonbank MSR buyers through loans.
The counterparty risks that nonbanks pose to Ginnie Mae are among the Department of Housing and Urban Development’s top management challenges, according to HUD’s IG.
Mortgage industry trade groups continue to pressure the Biden administration to intervene in the MBS market to help struggling homebuyers overcome high interest rates and low supply.