When Ginnie released its new capital eligibility standards this past summer, nonbanks far and wide were not happy. The agency later extended the implementation deadline until late 2024, but some shops are pondering their options. Ocwen is one of them.
Agency single-family MBS production continued to erode in the third quarter despite a modest pickup in purchase loans. Meanwhile, issuance fell sharply in the commercial MBS and ABS markets. (Includes three data charts.)
The timing lag between primary market originations and MBS issuance led to a sharp increase in securitization rates in the first quarter of 2022. (Includes data chart.)
Fannie, Freddie and Ginnie securitized just $48 billion of refinance loans in May as both rate-term and cash-out activity crumpled. Purchase-mortgage business was up an anemic 0.2% from April. (Includes two data charts.)
Most sectors of the structured-finance market saw declines in new issuance during the first quarter of 2022, including a steep drop in single-family agency MBS production. (Includes three data charts.)
The reputation of being a safe, liquid asset adds about 47 basis points to the “convenience premium” of agency MBS over investment grade bonds, according to the National Bureau of Economic Research.
Issuance of agency real estate mortgage investment conduits/collateralized mortgage obligations was essentially flat in 2021, with Ginnie sharply increasing its volume while GSE issuance declined. (Includes data chart.)
Higher conforming loan limits likely helped agency MBS issuance edge slightly higher in January. But the market started 2022 well behind its pace a year ago. (Includes two data charts.)
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