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Loan Modification
: Mortgage Lender Implode-o-MeterBond Dealers See Agency MBS Spreads Narrow as Prepays Rise
By Implode-Explode Heavy Industries
Yield spreads on agency mortgage-backed securities (MBS) narrowed to historic tights in recent months as prepay speeds increase at Fannie Mae and Freddie Mac.
The factors pushing the trend are a combination of the federal program to buy agency MBS, solid demand from private investors, and a move at Fannie and Freddie to buy out delinquent loans, all which accelerate prepayment speeds.
Full post as published by Mortgage Lender Implode-o-Meter on March 10, 2010 (boomark / email).
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