SFA restarted its RMBS Symposium event this week, with an agenda driven by issues under consideration at committees and task forces within the association.
Federal Reserve Vice Chair Michael Barr plans to recommend retaining capital requirements for unrealized losses on MBS held in bank portfolios. This provision was in response to the 2023 banking crisis.
Cash-out transactions still account for most agency refinance activity, but August brought a surge of rate-term refis into agency MBS, with the biggest increase in the Ginnie Mae market. (Includes two data tables.)
The outlook for Fed action is largely positive for MBS investors, with interest rate volatility expected to decline. Still, rate cuts will introduce a risk that has been limited for years: prepayments.
A new Urban Institute paper called on policymakers to build on the Financial Stability Oversight Council’s recommendations to address liquidity vulnerabilities among nonbank Ginnie Mae issuers.
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