Prepayment rates for Fannie Mae and Freddie Mac mortgage-backed securities slowed across the board in the July reporting period, while Ginnie Mae MBS speeds also slowed but remained "significantly faster than comparable conventionals," according to Bear Stearns analyst Dale Westhoff.Among Fannie Maes, the 2003 vintage 30-year 5.0% and 5.5% coupons slowed by constant prepayment rates of 1.3 CPR and 3 CPR, respectively, while the 6.0% through 7.0% coupons slowed by 7-10 CPR, Mr. Westhoff said. "We expect minimal market reaction to these numbers given that they are generally in line with market consensus," he said. "Nevertheless, there may be a sigh of relief from higher-coupon pass-through and [interest-only] investors as a substantial slowdown finally takes hold in all of these issues." Among Ginnie Maes, Mr. Westhoff said Bear Stearns believes that "the erosion in the credit performance of FHA/VA loans is adding up to 4 CPR" to baseline Ginnie Mae prepayments, pushing them "well above" comparable Fannie Maes in most issues. "Contrary to many expectations, today's report has widened the prepayment differential" between Fannies and Ginnies, he said. Bear Stearns can be found online at http:///www.bearstearns.com.
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The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
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In a Senate hearing, Director Sandra Thompson said a raise to the required income threshold provided to affordable housing was on the table, while housing regulators also faced questions related to property insurance hikes and title insurance waivers.
April 18 -
The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
April 18 -
The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
April 18 -
But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.
April 18 -
The top five producers had an average dollar volume of FHA loans of more than $50 million in 2023.
April 18