Issuance of agency single-family MBS was up modestly in November, stemming a two-month slide in production, according to a new Inside MBS & ABS ranking and analysis.
Rep. Hensarling: “This means the government needs to be in the last-loss position, with multiple layers of private capital, as diversified as possible, stacked up before it.”
Ginnie Mae this week announced new guidelines to curb the churning of VA loans and high MBS prepayment speeds – the first in a series of measures developed by a joint Ginnie/VA task force to address the problem.
It appears that Congressional reform of the housing-finance system – and final resolution of Fan-nie Mae and Freddie Mac – is back on track with a key piece of good news for MBS investors: an ex-plicit federal guarantee on conventional product looks likely.
The single security initiative and issuance of the first uniform MBS are on track for implementa-tion and issuance in the second quarter of 2019 and the government-sponsored enterprises are taking steps to make sure the market is ready, according to a progress update released this week by the Feder-al Housing Finance Agency.
The dollar volume of non-agency MBS backed by non-qualified mortgages could double or even triple next year, according to industry analysts. The increased issuance is expected to come from nonprime and prime borrowers who don’t qualify for conforming mortgages.
A handful of real estate investment trusts are looking to partner with nonprime lenders in a move that could help prime the pump for a significant increase in securitizations of non-agency mortgages that stretch the credit box.
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