High Delinquencies, Low Rates Make Perfect Storm for Ginnie Buyouts
January 22, 2010
Ginnie Mae prepayment speeds increased sharply as 2009 came to a close because of a perfect alignment of market variables including mortgage rates and buyouts, but prepay speeds should drop by 30 to 40 percent back to normal levels by February, according to Wall Street analysts. Ginnie servicers have some choices when it comes to buying defaulted loans out of the MBS they have...