In this issue…

Market Overview

Dick Kazarian, Managing Director, Borrower Analytics Group

This Market Overview provides an overview of rates, prepayments, credit, housing markets, and other topics of broad interest to mortgage market participants. Topics include: Mortgage Rates and Spreads, Prepayment changes from our MIMs Survey, and an update on the PMMS Survey. Read more…

CORE Insights: Are FHA Purchase Loans a Lurking Credit Risk?

Dick Kazarian, Managing Director, Borrower Analytics Group

In this article, we take a closer look at the credit risk of FHA purchase loans within our CORE™ Residential Model Suite. We cover the following topics:

•    Core Model Framework
•    The Importance of a Competing Risk Framework
•    Segmentations within the Government-insured sector
•    Why focus on FHA purchase loans?
•    Origination trends
•    What drives credit performance? Read more…

MSR Market Update – Q3 2022

Mike Carnes, Managing Director, MSR Valuations Group

MIAC Generic Servicing Assets™ (GSAs) have experienced significant YTD 2022 price increases across all four sectors and both vintages, with a UPB-weighted increase of 1.17 multiple (or 30.0%). Within Conventional products, pricing increased substantially more for 30-year than for 15-year, in both absolute (1.37 vs. 0.68 multiple), as well as relative (32.5 vs. 19.1%) magnitude. This is primarily due to the less negative 15-year option-adjusted durations (OADs) at the start of 2022 vs the substantially more negative 30-year OADs (-13.1 vs. -20.1). Read more…

Whole Loan Market Update – Q3 2022

Nicholas Dorn, SVP, Whole Loan Sales, Trading

The overarching themes in the whole loan market are much higher rates, wider spreads, inflation, stagnating or declining home prices, and declines in existing home sales. This market update covers the following sectors: Scratch and Dent (S&D), Non-Performing/Re-Performing (NPL / RPL), and Non-QM / Fix-and-Flip (Bridge) Loans. Read more…

Lock Tracker™

Dick Kazarian, Managing Director, Borrower Analytics Group

In this issue of MIAC Perspectives, we introduce our Lock Tracker™. We introduce this Lock Tracker to help market participants follow origination trends, considering the unprecedented market volatility in rates and volume since the start of 2022. Our data consist of applications processed by our Secondary Solutions Group (SSG) as of the initial lock date. We screened out reverse mortgages (mostly HECMs), second liens (both HELOCs and closed-end seconds), and Hybrids. Most originators do not do mandatory delivery for Hybrids, so this product type is under-represented in our data. Read more…


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