MBS RECAP: Mortgage Market Rocked by Instant Doubling of Regulatory Fees

Mortgage Market Rocked by Instant Doubling of Regulatory Fees Consider this: the average guaranty fee (charged by Fannie/Freddie to ensure timely payments to investors), including upfront LLPAs and the ongoing fees built into monthly payments netted the agencies roughly 48bps in Q2. In one abrupt announcement last night, they added 50bps for refis, more than doubling their take. Purchases got caught in the crossfire. It's a big mess for the moment. The last 8 minutes of today's video talks all about it. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Jobless Claims 963k vs 1.120m f'cast, 1.191m prev Market Movement Recap 08:19 AM Bonds were stronger at first in the overnight session, but Treasuries began losing ground after 5am ET. 10yr yields...(read more)

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