According to the Ginnie Mae president, the “majority” of the agency’s is-suers would already be in compliance with the new capital requirements. But at least one of its counterparties is considering exiting the Ginnie program.
One after another, nonbanks are lining up to reduce the size of their master repurchase deals or cut the credit entirely. Message: The mortgage boom is over.
The Federal Reserve’s pandemic-driven asset-buying spree altered the composition of assets and liabilities, a change that impacts balance sheet reduction.
A weak origination market is fueling reduced activity on MBS trades. Still, some view MBS as a safe haven of sorts, especially with the equities market reeling.
While the Biden administration’s student loan debt forgiveness program doesn’t apply directly to borrowers with private student loans in ABS, prepayments on the loans are expected to increase.
Office property occupancy still hasn’t recovered from the pandemic, putting downward pressure on valuations and the availability of liquidity for both CMBS and CRE borrowers.
Depository institutions’ share of mortgage originations grew for the fifth straight quarter during the April-June cycle, but nonbanks still dominated the market. (Includes two data charts.)
Servicing sales remain brisk but there’s been a deal slowdown of late and more discriminate buyers. Meanwhile, new Ginnie Mae capital rules could rock the boat further.
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