Home-equity lending weakened in late 2018 but remained a relatively bright spot in the mortgage business, according to an exclusive Inside Mortgage Finance market analysis. [Includes three data charts.]
The Securities Industry and Financial Markets Association last week voted “by a substantial majority” to approve the uniform MBS for delivery into the crucial to-be-announced market. The announcement followed months of uncertainty about whether the influential trade group would endorse the single security.
The difference between the weighted average coupon on Fannie Mae and Freddie Mac MBS soared to an average of 10 basis points in January, with Fannie pools showing consistently higher spreads. According to a report by Wells Fargo Securities last month, the wide gap may be because Fannie is offering sweeter guarantee-fee buy-up/buy-down deals to some issuers.
Ginnie Mae’s new rule requiring servicers to maintain a minimum servicing spread of 25 basis points will have very little impact on medium and large servicers, according to analysts with Keefe, Bruyette & Woods.
Earlier this month, the Financial Stability Oversight Council proposed rule changes that would make it more difficult to designate non-banks as systemically important financial institutions. It’s unclear what the new guidance would mean for the nation’s largest nonbanks, Fannie Mae and Freddie Mac.
The average daily trading volume in agency MBS totaled $229.9 billion in February, an 8.5% sequential decline from the previous month, according to figures compiled by the Securities Industry and Financial Markets Association.
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