FHA insures loans and Ginnie securitizes those loans. Here are the financial conditions of each.
The CFPB began with easy targets of credit cards, student & auto loans, mortgages. Now there are rumors of expanding to nearly every event that touches a consumer or money.
When a company is losing money, management tries to change that by lowering costs or making more money: simple. Why should Freddie & Fannie be any different? Since Fannie & Freddie were taken over, they have steadily increased guarantee fees and lessened the degree of cross subsidization in credit pricing. But industry observers suggest that
Investors in mortgage-backed securities are keenly interested in the prepayment speeds of new and old securities – why would someone pay a 3 point premium for a loan that is going to pay off in 4 months? Analysts expect that prepayment speeds across the various non-agency (aka non-Fannie/Freddie) sectors should increase as mortgage rates continue
[Latest in our ‘Future of Mortgages’ series] A few years ago, REITs that bought and sold residential mortgage securities were very much off the radar screen. But times change and according to DealLogic, of the nine new REITs with IPOs planned this year, seven will invest in mortgage backed securities (often referred to on this
There’s always lots of talk about Fannie and Freddie in the mortgage bond (aka mortgage backed securities or MBS) world, but what about their distant cousin, Ginnie Mae. They guaranteed more than $26.4 billion in mortgage-backed securities in April. That compares to about $24 billion in March and $26 in February. Unlike F&F, Ginnie doesn’t
I sure am happy that I am not working in the mortgage business anymore! First, Bank of America won a restraining order barring Colonial Bank from selling or otherwise disposing of $1 billion in cash and loans held by Colonial. Colonial, who most think will be taken over by the FDIC any day now (and
Politics & Regulation Election Day at last! It seems that this “election” has been going on for years, and I, for one, am at a loss wondering what the press is going to write and talk about, now that it is almost over. Maybe they’ll focus on FHA loans (the new subprime, with the taxpayer
Why couldn’t I have been born a Saudi prince? Then I could influence the supply and demand of a commodity. Crude oil prices hit a 13-month low, and so now OPEC will probably announce production cuts at a meeting next week. Under the heading, “nothing goes up, or down, forever”, oil has tumbled more than
FHA vs CONFORMING LOAN PRICING Loan agents often have trouble explaining to clients why why pricing on FHA loans (which are often securitized in Ginnie Mae pools) is different than conforming conventional loans. Looking at the basic security marketing pricing, Ginnie Mae securities have a better price than Fannie Mae securities, given the same coupon.