“The recent boomerang in rates has dampened already tentative homebuyer momentum as we approach the spring, a historically busy season for homebuying,” said Sam Khater, chief economist at Freddie Mac.
Attendance at the SFVegas conference this year hit another record. Demand for MBS and ABS is exceptionally strong, with few concerns on the immediate horizon.
New prohibitions against conflicts of interest in the MBS and ABS market will take effect in June 2025. But SEC officials are urging industry participants to raise compliance concerns, if any, as soon as possible.
Nonbanks are under increased pressure as borrowers face skyrocketing obligations on taxes and insurance. Concurrently, there’s a risk that interest rates will decline, cutting into MSR values.
If regulators take an aggressive stance, the final capital rule could be out by May. The other option would be to re-propose the rule, which could leave the rulemaking unfinished if there’s a change in administration.