The U.S. Court of Appeals for the Fifth Circuit upheld a ruling by a Texas district court, determining that Ginnie Mae had the authority to seize Texas Capital Bank’s interest in the tails on home equity conversion mortgages once serviced by Reverse Mortgage Funding.
"We continue to view agency MBS as an attractive alternative to tight investment-grade corporate spreads, with the recent buildup in risk premiums making the relative value case for agency MBS even more compelling," analysts at Goldman Sachs wrote.