The Treasury Department will hold meetings with issuers of non-agency MBS in the coming months to pick their brains on how the government can assist in uncovering "new paths" to increase private investment.
While jumbo mortgage securitization is currently attractive to issuers, industry analysts suggest that volume will remain limited this year due to a number of factors.
The biggest source of Fannie Mae and Freddie Mac business during the first five months of 2014 came from loans with high credit scores and loan-to-value ratios that don’t require mortgage insurance, according to a new Inside Mortgage Trends analysis. Some 34.0 percent of mortgages securitized by the two government-sponsored enterprises through May of this year had credit scores of 740 or higher and LTV ratios ranging from 61 percent to 80 percent ... [Includes one data chart]
A spike in mortgage interest rates similar to what occurred in 2013 is possible, according to economists at the Federal Housing Finance Agency. The May-June 2013 spike caught many lenders off guard and put a crimp in mortgage banking profitability. The direction mortgage interest rates are likely to head is heavily tied to the anticipations of market participants, according to Saty Patrabansh, a senior economist at the FHFA, along with William Doerner and Samuel Asin ...