Terms for funding agency residential mortgage-backed securities remained mostly unchanged over the course of the past three months, according to the latest Federal Reserve survey of senior credit officers. Only 5.3% of respondents saw terms tighten in the past three months. Meanwhile, 78.9% said funding terms for RMBS remained somewhat consistent. Only 3% said funding on agency RMBS eased during the quarter. When asked about demand from clients to fund agency RMBS, 31.6% of credit officers noted a slight uptick. About 57.9% said demand remained mostly unchanged, while 5.3% noticed a considerable increase. Just more than 5% said demand declined slightly. When asked how liquidity and functioning in the agency RMBS market has changed in the past three months, 68.4% said it remained unchanged and the other 31.6% said liquidity deteriorated somewhat. Meanwhile, terms on funding for non-agency RMBS also remained mostly unchanged, according to 80% of the survey’s respondents. About 13.3% said terms tightened somewhat, while 6.7% said terms eased somewhat. Write to Kerri Panchuk.
Fed survey shows GSE credit terms mostly unchanged in 3Q
Most Popular Articles
Latest Articles
Kristen Sieffert leads the reverse mortgage presence at The Gathering
FOA’s president spoke about bringing reverse mortgages into the mainstream at the event in Scottsdale, Arizona.