Ginnie Mae

Eliminate Fannie & Freddie, or Follow Ginnie Mae Model?

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

Current Thoughts Of Mortgage Traders

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

Future of Mortgages, part 8: Rising Influence Of REITs

[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

Ginnie Mae: No Slouch On MBS Issuance

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

Conforming vs FHA Rates, More WAMU Cuts, Jobless Claims Up

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.