TheMReport

February 2014

TheMReport — News and strategies for the evolving mortgage marketplace.

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58 | Th e M Rep o RT O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t SECONDARY MARKET the latest SECONDARY MARKET Fannie, ginnie mae msrs Up for Bid Both government entities looking to lighten their load. m ortgage Industry Advisory Corporation (MIAC) announced two new mortgage servicing rights (MSR) portfolios totaling more than $694 million. The first offering is a $669.22 million portfolio from a seller with originations focused mostly in the Northeast. The portfolio contains a mix of Fannie Mae (47 percent) and Ginnie Mae (50.9 percent) loans, with warehouse loans making up the rest. According to MIAC, the port- folio contains all fixed-rate loans with a weighted average interest rate of 3.9 percent, a weighted average delinquency rate of 2.27 percent, and a weighted aver- age loan age of six months. The average loan size for the portfolio is $185,071. The seller will provide full representations and warranties for the loans included in the offering, MIAC said. The bid date for the portfolio is January 30 In addition, MIAC is representing another seller offering a $24.96 million servicing portfolio. The portfo- lio contains 79.8 percent Ginnie Mae and 20.2 percent Fannie Mae loans. All loans included are fixed-rate and have an aver- age interest rate of 4.5 percent, a delinquency rate of 0.76 percent, and a loan age of two months. Most of the portfolio's concentra- tion is in New York. The average loan size for the portfolio is $190,504. The bid date for the second portfolio is February 7. According to MIAC, the seller is offering the portfolio without full representa- tions and warranties. Mortgage Industry Advisory Corporation (MIAC) announced two new mortgage servicing rights (MSR) portfolios totaling more than $694 million. senate returns, confirms yellen for Fed chair The Fed's first female chair is expected to follow in Bernanke's footsteps. t he United States Senate voted to confirm Janet Yellen as chair of the Federal Reserve follow- ing Ben Bernanke's departure at the end of January. She will be the first woman to take the job in the Fed's history. According to reports, Yellen's nomination passed in a vote of 56-26. Like her predecessor, Yellen seems to favor the strategy of keeping monetary policies loose as the economy works to get back on its feet—a position her opponents have criticized. "I have deep concerns about the long-term effects of pursu- ing [current] policies," said Sen. Chuck Grassley (R-Iowa) in a statement. "Historical evidence suggests that failing to rein in easy money policies on a timely basis risks fueling an economic bubble or even hyperinflation." Grassley added that while the Fed's recent strategy has benefited the stock market, the rest of the country has yet to see major improvements, noting that "the Fed has a dismal record at being able to produce sustainable job creation through expansion- ary monetary policy." Still, she's not without her supporters. Speaking at her nomination hearing before the Senate Banking Committee in November, Sen. Tim Johnson (D-South Dakota) pointed to her "extensive and impressive career in public service and academia" as proof of her qualifications. "We need [Yellen's] expertise at the helm of the Fed as our nation continues to recover from the Great Recession, completes Wall Street Reform rulemakings, and continues to enhance the stability of our financial sector," he said at the time.

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