Changes in Originator Commission Plans; Prepayment Speeds and Delinquency Buyouts; No Fee Reverse Mortgages; Commercial Loan Rankings
Posted To: Pipeline Press
In a past life I worked in a cubicle next to a fellow who always used to say, "I always tell everyone that I give 100% at work. What I don't tell them is that 24% comes on Mondays, 29% comes on Tuesdays, 22% comes on Wednesday, 15% on Thursday, and 10% on Friday." Percentages are important. As is well known, any investor in mortgages must consider default risk, interest rate risk, and early pay-off risk in assessing their value. Although originators rarely get excited about prepayments, investors and "The Street" watch prepay statistics closely , and recently we had a new batch to mull over. Overall it showed no big surprises, with Fannie & Freddie buying out delinquent high coupon loans and some lower coupon loans. Fixed rate Fannie prepayments were up 89% to a...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.