Prepayment speeds in August were previously expected to increase less than 5% overall. However, they slowed around 3% to 4%. There was a two-day increase in the day count compared with July, but the reduced refi activity in July offset this. The decreased number of refinancings were a result of slightly higher mortgage rates, tighter lending standards, and flat HPA, with many areas of the country showing negative HPA recently. FNMA speeds declined by about 3% on average for 4.5s through 6.5s. Speeds on FHLMC Gold and GNMA securities were also slower on average by 3% in 4.5s through 7s. FNMA 7s showed sharp declines after temporarily spiking up in August. For example, the 2006 vintage slowed 50% and 2002s were 32% slower. Speeds in July surged due to changes in Fannie Mae's servicer guidelines that had become effective on June 1. The new guidelines allow for the removal of loans from their respective pools if they are delinquent for four straight months. Analysts from RBS Greenwich Capital said the strong slower suggests the most of delinquent loans were removed from the pools. As a result, analysts expect to see a strong bid on FNMA 7s. Credit Suisse estimates paydowns in August were $34.7 billion, down 2.3% from July's $35.6B. Net issuance is estimated at $40.4 billion, up from $37.8 billion previously. Broken out, net issuance of 30-year FNMA/FHLMC Gold was $39.6 billion and GNMA's was $4.5 billion, analysts from Credit Suisse said. The September prepayment reports should reflect a slowing of roughly 15% or so, largely as a result of a drop in day count to 19 days from 23 days. Speeds are seen rebounding in October as day count increases to 22 days. Additionally, there might be some pick up related to the recent rate rally.
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Initial analyses of Home Mortgage Disclosure Act data show UWM ahead in 2023 loan numbers and dollar volume, but Rocket's market share still looks competitive.
March 28 -
There are two series, 2024-1 and 2024-2, that have revolving periods—three for the 2024-1 and five for the 2024-2—during which noteholders will not receive any principal.
March 28 -
The trust employs a 24-month revolving period. There is an increased risk that collateral quality could deteriorate as the transaction evolves with new collateral.
March 27 -
Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
March 27 - Yahoo Finance Feed
The banking giant has launched an online platform that links small-business owners and entrepreneurs in need of capital to community development financial institutions. The platform was developed in partnership with Community Reinvestment Fund USA.
March 27 -
Audited financials, proof of fidelity bonds and errors and omissions insurance must be provided on Ginnie Mae Central after May 13.
March 27