Mortgage trading narrowed this spring at a time when rates were rising. Lo-and-behold, rates are headed south once again. But inflation fears are accelerating. What’s an MBS owner to do?

Most of the increase in Ginnie loan removals came from borrower payoffs, but servicer buyouts for loss mitigation and foreclosure rose sharply. (Includes data chart.)

What a difference a year can make. Last spring, the REIT was getting margin-called and selling MBS. Today, it’s buying huge mortgage banking franchises.

If you want to be a player in Ginnie Mae early buyouts, you’ll need cash, lots of it. But is the window starting to close?

Trading desks had a busy month in February as rising rates caused participants to act. Where do we go from here? Good question.

The Ginnie Mae early buyout game is catching on fast, with new players entering the fray. loanDepot recently increased a repo line, bolstering its ammunition.

If you’re interested in buying delinquent FHA/VA mortgages out of MBS pools, one shop, PennyMac, reveals just how much money you can make.

Read the tea leaves: Rising rates and a jump in MBS activity could portend trouble up around the bend.

Some $714 billion of loans were removed from Ginnie MBS last year, with about 86% of them representing borrower payoffs. Repurchases of delinquent loans were also up sharply from 2019. (Includes two data charts.)