A modest October rebound in deliveries of refinance loans into agency MBS wasn't strong enough to offset a drop in purchase-mortgage business at Fannie Mae, Freddie Mac and Ginnie Mae. (Includes two data charts.)
Fannie and Freddie pared back their portfolio holdings designated to support future business in the third quarter. Earnings were down from an eight-year high reached in the second quarter. (Includes data chart.)
Even with the clarification, some suggest VA lenders need more details to understand when they may refinance a loan included in a Ginnie-guaranteed MBS pool.
The leaders of the mortgage REIT world posted third-quarter results this week. Bottom line: Strong earnings and common shares that continue to pay a nice dividend.
By raising the income limit for RefiNow and RefiPossible, FHFA has upped the pool of borrowers eligible for a refi by nearly a third. What that does to prepayment speeds depends on the uptake of the programs.
Federally insured depositories often source their CRA loans via nonbanks and an investment banking trading desk. But what if nonbanks must suddenly adhere to CRA standards of their own?
Investors bought more MBS in September than August if trading numbers are any indication. Meanwhile, all eyes are on the Fed and the question of tapering.