Ginnie Mae has introduced the first government-guaranteed stripped mortgage-backed securities with a $2.2 billion deal underwritten by a syndicate of 14 Wall Street securities dealers led by Goldman Sachs Group Inc.Stripped MBS are pass-through securities created by separating (stripping apart) the principal and interest payments from mortgages that back standard MBS and other mortgage-related assets, creating principal-only and interest-only classes (or combinations of the two), Ginnie Mae noted. Platinum securities, Ginnie Mae's MBS aggregation product, are the only type of asset currently allowed to be used as collateral for the new Strip transactions, the agency said. The new program "provides us greater access to the important institutional investor segment," said Ginnie Mae President Ronald A. Rosenfeld. "These new securities help satisfy investor demand for additional risk management and yield enhancement securities, and should increase the demand for Ginnie Mae mortgage-backed securities. This should ultimately lead to lower borrowing rates for FHA and VA homebuyers." Ginnie Mae can be found online at http://www.ginniemae.gov.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
July 11 -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
July 11 -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11