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Volume 2011 - Number 42

November 4, 2011

Downloads Available: Agency MBS Production as of October 2011 (graph)

Downloads Available: Top Agency MBS Issuers in October 2011


Agency MBS Production Up Again in October for Third Month in a Row But Still Not at Full Speed

Agency residential MBS production bounced higher again in October, but the latest refinance boom – if it even qualifies as one – is still well short of the last cyclical high in late 2010. A new Inside MBS & ABS ranking and analysis reveals that $103.03 billion of agency single-family MBS were issued last month, a 7.0 percent gain from September. And October marked the third straight monthly increase after the agency MBS market hit a 30-month low back in July. Production in October still trailed the levels generated in the first two months of 2011, when the previous refi boom was...(Includes one graph and one data chart)

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This weekly covers the secondary mortgage market, including mortgage-backed securities and asset-backed securities.

 

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Poll

Are current mortgage underwriting standards too tough?

Yes, they don’t reflect current market conditions and need to be adjusted to allow borrowers with below 700 FICO scores and smaller downpayments to qualify for mortgages.
Yes, and something needs to be done to significantly reduce repurchase or buyback risk so that lenders don’t apply even tougher underwriting overlays.
No, the standards are appropriate given current risks and the major default problems the mortgage market has experienced over the past several years.

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