Beginning May 13, Ginnie Mae will transition to a central application system for issuer submissions of required fidelity bond, errors and omissions insurance, and financial statements.
Two former members of the Fed’s board called for bank regulators to adjust capital requirements for MBS holdings to better account for interest rate risk.
The securitization rate for residential mortgages increased each quarter in 2023. Though on an annual basis, the rate was steady. (Includes data table.)
The Fed could start cutting rates in June, according to projections by industry analysts. The Fed is also moving toward slowing the runoff of its holdings of Treasury securities and MBS.
Officials from the secondary mortgage market believe innovations in products, policy and technology can support lenders and borrowers through a difficult housing market.
Hope springs eternal for a revival in Ginnie Mae early buyout activity this year. Two missing ingredients: a steeper decline in mortgage rates and an end to the VA moratorium on foreclosures.
The mortgage industry keeps pining for a rate cut but so far the Fed has resisted. This week, a hotter-than-anticipated CPI reading stalled momentum on the rate front and MBS prices headed lower.
Lenders typically hedge loans by short selling the type of security those loans will eventually go into. However, if the market for that security is unattractive, they can cross-hedge into better performing markets if their pricing movement correlates with the loans.