Items Tagged with 'prepayment rates'


  • Black Knight: Interest rate drop led to flood of mortgage prepayments in March

    Prepayments see largest single-month increase in more than two years
    Mortgage interest rates dropped throughout the month of March, culminating in interest rates closing out the month with the largest single-week decline in 10 years. As of the end of March, mortgage rates were at their lowest point since January 2018. And as one might expect, that drop in mortgage rates led to a massive increase in mortgage prepayments in March, according to a first look at March’s mortgage data from Black Knight.
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  • Morningstar: Here's the impact of rising interest rates on mortgage-backed securities

    Prepayments will slow, default risk could rise
    The latest data from Freddie Mac, released Thursday, showed that mortgage interest rates are on the rise again. What will the impact of rising interest rates be on mortgage-backed securities, especially private-label mortgages? A new report from Morningstar has the answers. And here they are.
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  • Why "fast" mortgage servicers crush the TBA bond market

    Deutsche Bank analysts: Prepayments costing hundreds of millions per year
    A new segment of lenders and servicers that specialize in quicker prepayments is costing the TBA market “several hundred million of dollars a year,” analysts from Deutsche Bank Markets Research said in a new report. Prepayments are a new kind of problem now.
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