MBS

Issuance of new mortgage-backed securities guaranteed by Ginnie Mae has returned to levels last seen during the year monetary policymakers began raising rates.

The Swiss bank claims that Countrywide is obligated to indemnify it for legal expenses stemming from risky mortgages bundled pre-2008.

Mortgage bonds tend to lag Treasuries when it's unclear where rates are going, because changes in yields can have a big impact on how many borrowers refinance their home loans.

The company earned about the same in the second quarter but less versus the prior period as it added to credit reserves due to loan acquisition activities and higher mortgage rates.

But the industry-backed proposal differs by $13 million from the House version of the appropriation bill and it is not likely to get resolved until after the November election.

Last year alone, insurers increased their holdings of residential mortgage loans by a whopping 45%, or about $20 billion, according to an analysis by Ellington Management Group. 

The agency is looking to improve liquidity for its reverse mortgage-backed securities issuers who have to buy back loans.

Home price appreciation and favorable economic factors have led to consistent loan performance, but prepayments are increasing with an uptick in housing turnover, according to Morningstar DBRS.

Stakeholders are watching carefully as the 2023 crisis and a capital proposal increase banker wariness of mortgage assets, speakers at Invisso's MBS Forum said.

The Department of Housing and Urban Development agency warned in an online notice that issuers with prepayments exceeding certain limits could face sanctions.