Caliber is worried that if interest rates rise from current levels, the volume of prepayments and mortgage payoffs is likely to decline, which will reduce the cash available to fund servicing-advance obligations.
The agencies securitized almost $592 billion of single-family refi loans, a 17.8% increase from 2Q. Refis accounted for 64.7% of the market during the third quarter. However, purchase-mortgage activity increased more in percentage terms...
DBRS saw a relatively small 5.7% decline in MBS ratings from the first to the second quarter, and actually upped its ratings of expanded-credit mortgage MBS...
More importantly, the analyst noted, the council threatened to impose still stricter standards or designate the GSEs as systemically important financial institutions if the capital rule was materially softened.
Fannie and Freddie securitized $556.2 billion of single-family loans that were aged three months or less when the MBS was issued, a whopping 81.0% increase from the prior quarter.
The comeback in the July-to-September period was led by JPMorgan Chase, which brought $2.12 billion of prime non-agency MBS to the market spread across four deals...