AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
Long Month Boosts Prepayment Rates: Leverage will be the key to a borrower's prepayment behavior.
Prepayment rates on the collateral in agency mortgage-backed securities rose nearly 8% across the coupon stack in August, but the speedup was probably just an artifact of a longer reporting period, according to Bear Stearns.
The August reporting period had three more business days than the July period, said Dale Westhoff and V.S. Srinivasan, senior managing directors at Bear Stearns.
Pointing to a forthcoming three-day decline in the number of business days in the September reporting period, the Bear Stearns analysts predicted that speeds would fall 10% next month, despite a recent 20-basis-point drop in mortgage rates.
Overall speeds on Fannie Mae 30-year MBS collateral increased from a constant prepayment rate of 10.7 CPR in July to 11.5 CPR in August, and the comparable Freddie Mac speeds rose from 9.7 CPR to 10.5 CPR, they reported.
For 30-year Ginnie Mae collateral, aggregate speeds rose 9%, from 14.5 CPR to 15.8 CPR.
The analysts noted that Ginnie Mae speeds remained "significantly faster" than those of conventionals for most cohorts originated before 2005. But they said structural changes in the Federal Housing Administration program, combined with the state of the housing market, are likely to keep speeds on this year's Ginnie Maes slower that those of comparable Fannies and Freddies.
Meanwhile, prepayments in the agency hybrid sector rose about 9% in August, but even with this increase, discount speeds (adjusted for relative coupon and seasoning) are still slower than last year's, they reported.
- SELECTED 30-YEAR FIXED-RATE PREPAYMENTS.(Ginnie Mae mortgage backed...
- Magazine article from: National Mortgage News April 17, 2000 700+ words
...8 11.4 15.6 Ginnie Mae 7.50 2022 8...15.8 Source: Bear Stearns Prepayment Commentary...Fannie Mae and Ginnie Mae mortgage-backed...month was in the [Ginnie Mae] sector, where...of 40%," said Bear Stearns analysts Dale Westhoff...
- Ginnie Mae Prepayments Outpace Other Classes of MBS.
- News wire article from: Mortgage Line Peters, Terry August 17, 2004 700+ words
...in June, while Ginnie Mae MBS speeds held...According to the Bear Stearns Prepayment Commentary...a 22% drop, Bear Stearns analysts Dale Westhoff...did not hold for Ginnie Mae MBS. "In contrast...expectations] on [Ginnie Mae] speeds as we...Freddie ...
- Ginnie Mae Speeds Not Slowing as Quickly as Fannie's and Freddie's.(Federal...
- Magazine article from: Mortgage Servicing News Peters, Terry December 1, 2003 700+ words
...reporting period, but Ginnie Mae MBS speeds "threw...according to the Bear Stearns Prepayment Commentary...lower-coupon Ginnie Mae cohorts defied...muddying the (Ginnie Mae) prepayment waters...coupons)," the Bear Stearns analysts said...
- Ginnie Mae Prepayments Outpace GSE Rates.
- News wire article from: Mortgage Line Peters, Terry September 13, 2004 700+ words
...securities, while Ginnie Mae MBS speeds also...according to Bear Stearns analyst Dale Westhoff...Westhoff said Bear Stearns believes that...CPR" to baseline Ginnie Mae prepayments, pushing...unlikely that [Ginnie Mae] discount/cusp...according to ...
- Ginnie Mae's Second Wind?
- Newspaper article from: Asset Securitization Report O'Leary, Chris June 25, 2007 700+ words
...from the distress is Ginnie Mae, which could potentially...internal hedge fund run by Bear Stearns reportedly facing massive...said. On the whole, Ginnie Mae mortgage borrowers are...make up about 70% of Ginnie Mae pools, typically qualify...
- Ginnie Mae: a tale of two entities; The plummeting market share of Ginnie Mae...
- Magazine article from: Mortgage Banking Willis-Boyland, Anita April 1, 2005 700+ words
...Government National Mortgage Association, or Ginnie Mae, played a pivotal role in the success...securitization was in its infancy when Ginnie Mae first began pooling government-insured...But other loan types packaged into Ginnie Mae securities are: Department of Veterans...
- GINNIE MAE IS MEETING ITS MISSION BUT FACES CHALLENGES IN A.
- News wire article from: The America's Intelligence Wire October 31, 2005 700+ words
...that report could be applicable to Ginnie Mae. For example, Congress could establish a higher limit on Ginnie Mae`s commitment authority, although...risk. Congress could also require Ginnie Mae to provide more frequent updates on...
- Ginnie Mae Cuts Servicing Fee.
- Magazine article from: Mortgage Servicing News Collins, Brian March 1, 2003 700+ words
...Association has revamped its 18-year-old Ginnie Mae II securities program by reducing its...similar change in the conventional market. Ginnie Mae reduced the minimum servicing fee from...reforms designed to improve pricing for the Ginnie Mae II program, may put pressure on Fannie...
- Ginnie Mae Considering Plan To Build $60B MBS Portfolio.(Brief Article)
- Magazine article from: National Mortgage News COLLINS, BRIAN August 23, 1999 700+ words
...proposal under consideration would allow Ginnie Mae to purchase its own guaranteed mortgage...purchases would support the market for Ginnie Mae securities. Just as important, an investment...avoid a possible privatization or sale of Ginnie Mae because of budget pressures. According...
- Ginnie Mae Puts Odd Coupon On Hold.(Brief Article)
- Magazine article from: National Mortgage News June 5, 2000 700+ words
...Following several weeks of intense debate, Ginnie Mae officials announced that they are not prepared to make a decision on opening up Ginnie Mae securities to odd coupon loan pools...days after a May 23 teleconference where Ginnie Mae officials heard members of The Bond Market...
Source: HighBeam Research, Long Month Boosts Prepayment Rates: Leverage will be the key to a...