Prepayment rates for Fannie Mae mortgage-backed securities rose sharply in March as the speed of the massive 5.5% 2003 coupon surged 48%, according to the Bear Stearns Prepayment Commentary.Bear Stearns analysts Dale Westhoff and Bruce Kramer said the speeds of most coupons jumped 25%-30%. The report reflects "two important realities in the current prepayment landscape," they said, namely "ample capacity in the mortgage pipeline" and the "significant drop" in mortgage rates after the March 5 employment report. However, they went on to note the more recent back-up in interest rates. "The sell-off has pushed the mortgage rate back to where it was at the beginning of the year (5.90%), reducing MBS market refinancing exposure from a high of 70% in March to just 37% today," the analysts said. "Similarly, the average borrower refinancing incentive has dropped from a high of 80 basis points the week ending March 12 to just 30 basis points today." Bear Stearns can be found online at http://www.bearstearns.com.
-
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
2h ago -
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.
3h ago -
The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
10h ago -
The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
11h ago -
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