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Inside MBS & ABS
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SRPs Remain High. MSR Interest Strong but Declining Rates Begin to Weigh

December 18, 2018
Paul Muolo
One advisor said he knows of three bulk transactions that are stalled: one sized at $7.0 billion, another at $16.0 billion, and one more at $24.5 billion.
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Short Takes: CBO Wants to Raise G-Fees to Reduce the Federal Deficit / On-Balance Sheet GSEs or Off? / 5 to 15 Basis Points / The Cash Cows are Ready to Give Milk / It’s All About the Math

December 17, 2018
Paul Muolo
The Congressional Budget Office wants to hike g-fees by 5 basis points in October 2019 and then 15 basis points after 2021.
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MBS Trading Hammered. Will the Stock Market Carnage Continue, Leading to Lower Rates?

December 17, 2018
Paul Muolo
The latest reading is a sign that liquidity is suffering and the creation of new agency securities is in the doldrums...
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Outlook for Prime Non-Agency MBS Tied to GSE Pricing, Tools

December 17, 2018
Brandon Ivey
With Mel Watt’s term as FHFA director ending in early January, a new director appointed by President Trump is widely expected to take actions to reduce the GSEs’ footprint…
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FHA and VA Introduce New Loan Limits for 2019

December 17, 2018
George Brooks
FHA will increase its floor for forward mortgages to $314,827 from $294,515.
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Deputy HUD Secretary Pam Patenaude Quits After 15 Months on the Job

December 17, 2018
Paul Muolo
She brought a certain depth of knowledge to the table for her boss, Ben Carson, a career brain surgeon with little in the way of housing and mortgage experience.
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Around the Industry

December 14, 2018
Mortgage broker trade group introduces NAMB All-In. Genworth launches risk-based pricing engine. VA updates fee-cost schedule. Industry groups pressure Senate to confirm Trump nominee for GNMA.
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Analysts Suggest Interim Action for Ginnie Mae on Cash-Out Refi Loans

December 14, 2018
Mortgage-backed securities analysts are recommending that Ginnie Mae temporarily place VA cash-out refinance loans with high loan-to-value ratios in custom pools until the VA implements new rules to curb churning in cash-out refis.
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GNMA Data Reveal Sharp Increase in FHA Risk Layering Over 2 Years

December 14, 2018
FHA officials have sounded alarms over the rising concentration of higher-risk loans in new business. An exclusive new Inside FHA/VA Lending analysis shows they have good reason to be concerned. (chart)
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What We’re Hearing: FHA Loan Limits / What a Shutdown Means / The Return of Angelo Mozilo / The Finger of Blame Points to Wall Street / New Disclosures from Ditech / A Subservicing Business Dominated by One Client

December 14, 2018
Paul Muolo
The panel Mozilo spoke on was billed: “Join two titans of the industry as they discuss the past, present and future of the mortgage industry.”
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