In a joint comment letter, a dozen trade groups said the FCC’s proposed restrictions on foreign call centers are unnecessary because existing federal laws already impose “extensive” consumer protection, privacy and data security obligations on financial services providers.
The fees for early payoffs are only available for non-owner-occupied loans. The convexity profile they create for non-agency loans makes them attractive to MBS investors.
Hedging could lessen the shock of prepayments for large banks holding mortgage servicing rights. There aren’t similar offsets, though, to mitigate a surge in defaults, according to research from the Fed.
The National Association of Insurance Commissioners voted to reduce restrictions on mortgage investments by insurance companies, providing more incentives for the firms to buy non-agency assets.