In a joint statement, the CEOs of Fannie and Freddie said the new adverse market fee will not increase borrowers’ costs, it will only reduce their savings.
As investors sift through the tea leaves of the bond market, the average daily trading volume in agency MBS increased 11% in July from the month prior. But where we go from here is anyone’s guess.
A new 50-basis-point fee on GSE refis caught the mortgage industry off guard this week. A big deal or much ado about nothing? Either way, lenders are not happy.
It’s here: A mortgage-backed security, 15-years in duration, that pays investors a note rate of 1.5%. Would you lock up your money for that long? You may not have a choice.
In the first half of 2020, Freddie priced 28 deals totaling $20.73 billion. So far in the third quarter, it has already brought 10 and has 13 transactions on its calendar through September.
The Financial Stability Oversight Council wants to take a close look at the secondary mortgage market but isn’t letting on about its agenda. Maybe a “housing czar” will come out of this, some wonder.
With overnight funding in the agency repo market hovering around 15 basis points and term repo rates a shade above the one-month LIBOR, yields for agency mREITs could edge upward, KBW analysts predict.
The company believes delivering loans to agency MBS helps it be a “high velocity, capital light and cash generating” operation. This year, the firm has held mortgages on its balance sheet for as few as eight days.
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