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Volume 2011 - Number 45

November 25, 2011

Downloads Available: Securitization Rates for Home Mortgages - 9M2011


Mortgage Securitization Issuance in 3Q11 Lags Primary Market; Securitization Rates Slow

Residential mortgage securitization rates declined in the third quarter of 2011, but surging volume in the primary market will push new MBS issuance higher in coming months. A total of $247.5 billion of residential MBS backed by newly originated loans were issued during the third quarter, representing a relatively low 76.1 percent of the supply of new home loans originated by lenders during the period, according to an Inside MBS & ABS analysis. During the third quarter, about 67 percent of single-family mortgages securitized by Fannie Mae were...(Includes 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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