Ginnie RMBS safe from FHA refinancings, so far

By Ryan Bolger
17 Feb 2015

Ginnie Mae RMBS investors' returns could soon be hit by accelerated payments from a large upswing in FHA refinancings.

The impact of a 50bp drop in FHA mortgage insurance premiums (MIPs) has disappointed investors who sold off Ginnie Mae RMBS fearing that lower MIPs would encourage borrowers to refinance their FHA loans at lower rates.

The government refinance index has not increased much despite two full weeks ...

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