Secondary markets

Thanh Roettele will help guide the Canadian bank's growth in the mortgage warehouse space in one of its latest moves aimed at the U.S. market.

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 increase in refinance volume in July took place before the mortgage rate collapse in early August that brought the share to over 25%, Optimal Blue data showed.

Risks include pushing debt-to-income ratios too high for qualifying and rising costs leading to defaults, all of which affect the secondary markets.

Soaring insurance costs may add to escrowed funds that servicers can earn money on in some cases, but higher premiums also could lead to affordability issues.

Appraisal appeal rules announced by Fannie Mae, Freddie Mac and FHA set to go into effect in three weeks, will now be required starting on Oct. 31.

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.

While the REIT still seeks to grow servicing, it's been willing to sell for the right price as it responds to new rate-related risks and opportunities.

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.

Nearly all of the business came from home purchases, but reflecting the decline in mortgage volume and a revived Federal Housing Administration offering, fewer people overall used the product.