The novelty of prepayment as a primary risk factor is one of the charms MBS have for foreign investors, particularly sophisticated institutional investors. That’s because it has a relatively low correlation factor with other assets.
The changes outlined to boost funding for Ginnie Mae servicing rights could bring the agency closer to the market for MSRs on GSE loans, according to industry stakeholders.
The issue of fast prepays on VA IRRRLs refuses to die. Recently, VA mailed a warning letter to as many as 500 lenders. Inside MBS & ABS obtained a copy of the correspondence.
MBS and MSR investor New Residential signaled that it might engage in a large stock buyback program, but so far there’s been no activity. It’s possible political considerations might be a factor.
Three names are being kicked around to head Ginnie Mae, the government’s $2 trillion MBS guarantor: Robert Couch, Clinton Jones and Joe Murin. But is something else afoot?
The agency is seeking comment on an initial draft policy guidance for accepting digitized mortgages and loan packages as underlying collateral for Ginnie MBS.
The White House plans to nominate someone to lead Ginnie Mae but given the current political turmoil in Washington, is this a pipe dream? Investors don’t seem worried about the agency, at least not yet.
Ginnie Mae, the government guarantor that backs $2 trillion in mortgage assets, still doesn’t have a permanent president even though the election took place three years ago. Will anything change?
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