Month-over-Month From end-of-month June to end-of-month July, the MIAC Generic Servicing Assets (GSAs™) Conv_30 Index decreased by 5.05%, and the GNII_FHA_30 Index decreased by 0.57%. During the month of July, Conv_30 Index OAS’s tightened to close the month at 1,258.3 bps, for a decrease of 36.4 bps. The GNII_FHA_30 Index OAS’s tightened to 1,571.8 bps,… Read more »
MIAC Publications
Research Insights: The Impact of the Agency’s New Adverse Market Fee
By Dick Kazarian, Managing Director, Borrower Analytics Group Mike Carnes, Managing Director, MSR Valuations Group Announcement and Industry Feedback Announced on August 12th and applied to all refinance mortgages with settlements dates on or after September 1, 2020, both Fannie Mae and Freddie Mac will begin charging a 0.5% adverse market fee on… Read more »
Research Insights (UPDATE): Modeling the Impact of Covid-19 on Whole Loans – Credit, Cash Flows and Valuation
By Dean C. Hurley, Managing Director, Structured Products and Whole Loan Valuation Group Dick Kazarian, Managing Director, Borrower Analytics Group MIAC Coronavirus Macrofactor Scenarios MIAC has revised our March-end macrofactor scenarios that show how we view the economy over the next three years because of the Coronavirus pandemic. We have sketched out possible… Read more »
Research Insights: Modeling the Impact of Covid-19 on Whole Loans – Credit, Cash Flows and Valuation
By Dean C. Hurley, Managing Director, Structured Products and Whole Loan Valuation Group Dick Kazarian, Managing Director, Borrower Analytics Group Markets Overview – The Environment All of the major financial markets have suffered major disruptions as a result of the Coronavirus Disease 2019 (“Covid-19”). MIAC’s position is that only by properly modeling the… Read more »
Residential MSR Market Update – February 2020
Month-over-Month From end-of-month January to end-of-month February, the MIAC Generic Servicing Assets (GSAs™) Conv_30 Index decreased by 7.12%, and the GNII_FHA_30 Index decreased by 9.32%. In larger GSA cohorts, which are actively traded in the MSR market, the Conv30_3.5_2018 cohort decreased by 8.09%, and the GNII_FHA30_3.5_2018 cohort decreased by 9.15%. During the month of February,… Read more »
Residential MSR Market Update – January 2020
Month-over-Month From end-of-month December to end-of-month January, the MIAC Generic Servicing Assets (GSAs™) Conv_30 Index decreased by 5.22%, and the GNII_FHA_30 Index decreased by 7.70%. In larger GSA cohorts, which are actively traded in the MSR market, the Conv30_3.5_2018 cohort decreased by 5.63%, and the GNII_FHA30_3.5_2018 cohort decreased by 4.97%. During the month of January,… Read more »
Residential MSR Market Update – December 2019
Year-Over-Year How is it that time seems to fly by yet certain events seem to have occurred so long ago? I’m sure some of you may have already forgotten that 2019 began with the longest government shutdown in US History, lasting from December 22, 2018, to January 25, 2019. Who would have known at that… Read more »
Research Insights: Credit Risk in GNMAs – October 2019
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 »
Research Insights: Liquidation Timelines
This is the second edition of Research Insights, taking a closer look at liquidation timelines. Because this is a complex subject, this edition focuses on a few key themes. Additional details will be addressed in future editions of our Research Insights series. What are Liquidation Timelines? We define the liquidation timeline for a residential loan… Read more »
Residential MSR Market Update and Research Insights – November 2019
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 »