Research Insights: Credit Risk in GNMAs – October 2019

Posted in MIAC Publications, Research Insights.

Introducing MIAC’s “Research Insights” series: designed to be both short and topical. Your feedback is essential and we welcome comments on existing articles as well as suggestions for future ones. Measuring Credit Outcomes There are numerous ways to quantify credit outcomes – each of these metrics have their strengths and weaknesses. However, for purposes of… Read more »

Residential MSR Market Update and Research Insights – November 2019

Posted in MIAC Publications, MSR Market Updates.

Since last month’s issue, we added a “Research Insights” series to our Monthly Residential MSR Update. These Insights are designed to be both short and topical. Your feedback is essential to accomplishing these twin objectives. We welcome comments on existing articles as well as suggestions for future ones. The additional content will follow the MSR… Read more »

Residential MSR Market Update and Research Insights – October 2019

Posted in MIAC Publications, MSR Market Updates.

Beginning with this issue, we are adding a “Research Insights” series to our Monthly Residential MSR Update. These Insights are designed to be both short and topical. Your feedback is essential to accomplishing these twin objectives. We welcome comments on existing articles as well as suggestions for future ones. The additional content will follow the… Read more »

Residential MSR Market Update – September 2019

Posted in MIAC Publications, MSR Market Updates.

Month-over-Month From end-of-month August to end-of-month September, the MIAC Generic Servicing Assets, (GSAs™) Conv_30 Index increased by 3.53% and the GNII_FHA_30 index increased by 3.15%. In larger GSA cohorts, which are actively traded in the MSR market, the Conv30_3.5_2016 cohort increased by 3.70% and the GNII_FHA30_3.5_2016 cohort increased by 3.23%. During the month of September,… Read more »

Residential MSR Market Update – August 2019

Posted in MIAC Publications, MSR Market Updates.

Month-over-Month From end-of-month July to end-of-month August, the MIAC Generic Servicing Assets, (GSAs™) Conv_30 Index decreased by 7.45% and the GNII_FHA_30 index decreased by 12.96%. In larger GSA cohorts, which are actively traded in the MSR market, the Conv30_3.5_2016 cohort decreased by 8.03% and the GNII_FHA30_3.5_2016 cohort decreased by 17.06%. During the month of August,… Read more »

CECL – Raising the Standards of Success

Posted in Current Expected Credit Loss: CECL News & Events, MIAC Publications, Perspectives.

Overview of the Rules CECL overhauls the current impairment models for loans, leases and debt securities, and also impacts commitments. It removes the “probable” threshold under the “incurred loss model” for recognizing credit losses. Firms will be required to report the current estimate of lifetime loan losses, incorporated into the Allowance for Loan and Lease… Read more »

Selling Seasoned Residential Whole Loans to the GSEs or Ginnie Mae

Posted in MIAC Publications, Perspectives.

Who are the GSEs and Ginnie Mae? Fannie Mae, the Federal National Mortgage Association (FNMA) and Freddie Mac, the Federal Home Loan Mortgage Corporation (FHLMC) are the established secondary market lenders responsible for the liquidity of the majority of conventional, non-Government, conforming residential whole loans that are originated today and for the past number of… Read more »

Mortgage Benchmark Prices and Yields in a Post-LIBOR World

Posted in MIAC Publications, Perspectives.

Executive Summary For purposes of lowering mortgagor borrowing costs, building a stronger banking system through more efficient hedging of mortgage risk and  encouraging additional capital to enter the mortgage sector, we believe there  is ample reason to include a mortgage current coupon yield index as one of  the alternative indices to LIBOR Now that protective… Read more »