Navigating the Impacts of the FHFA’s Proposed 2% Liquidity Requirement
The March 2020 bond rally set off by the global pandemic may have passed, but the impact of the volatile 2020 TBA market persists – even as the Federal Housing Finance Agency (FHFA) proposes new liquidity requirements.
4 Concepts to Consider When Refining Your Hedging Strategy
Many metrics contribute to a successful mortgage pipeline hedging strategy. While measurements such aspull-through rateare generally understood, others—such asduration—offer an opportunity for deeper knowledge across the mortgage industry.
Observing the Secondary Marketing Impacts of GSE Caps on Non-Owner-Occupied Properties
- Loan sale data from Black Knight’s Secondary Marketing Technologies group shows bulk pricing on investment and second homes fading by approximately 75 basis points in the last month, following the GSE announcement
- Lenders need to take an active approach to applying extra margin [...]
Market Commentary: The Impact of Lock Pull-Through on Hedge Performance & Profitability
When an interest rate on a mortgage is locked with the borrower, the loan origination process is far from complete or pre-determined. Circumstances may arise that jeopardize the likelihood that the loan will close. The underwriter could find the borrower to be unqualified, a [...]
4 Key Points to Consider When Transitioning from Best Efforts to Mandatory Delivery
Making the decision to transition from Best Efforts to Mandatory delivery is a process that begins well before an organization actually takes the leap. As you contemplate the right transition time and strategy for your organization, you will want to conduct a preliminary [...]