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Are mortgage back securities next?
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Replies: 9
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Are mortgage back securities next?

1
Mar 13, 2023, 1:53 PM

Nobody is selling any existing mortgages. If you need cash, it's going to cost you dearly to sell an existing mortgage. Pretty much everybody refinanced 2-4 years ago.

2024 orange level memberbadge-donor-10yr.jpg flag link military_tech thumb_downthumb_up


Not in here they aren't.

3
Mar 13, 2023, 1:54 PM

Maybe try the PileOdicks bored.

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Are people defaulting on their mortgages?

1
Mar 13, 2023, 2:13 PM

Looks ok to me.

https://www.consumerfinance.gov/data-research/mortgage-performance-trends/mortgages-30-89-days-delinquent/#mp-line-chart-container
Mortgages 30-89 days delinquent | Consumer Financial Protection Bureau
Find interactive charts that show the percentage of mortgages 30–89 days delinquent in the U.S. based on a 5 percent sample of residential mortgages since January 2008.
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I refinanced in January.

1
Mar 13, 2023, 2:39 PM

Dropped the loan I got in November a full point.

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If nobody is selling their existing mortgage

1
Mar 13, 2023, 2:58 PM

and are making (relatively low) payments every month, seems like they are pretty safe to me?

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This is different than last time. The mortgages are fine.

1
Mar 13, 2023, 4:49 PM

But if a bank or mortgage company needs cash and has to sell mortgage assets to raise cash, then they will not be able to sell the mortgage for the same amount because interest rates have risen.

Have you ever had a mortgage sold? All of a sudden you are making payments to a new bank. The new bank bought the mortgage and refinanced it. It works well when rates are dropping, but not so good when rates are rising.

Your mortgage is safe but the bank may not be.

My point is that banks might also be stressed due to holding low interest mortgages right now with not enough new mortgages at higher interest rates to help and nobody is after their existing mortgages.

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Like bonds, value has decreased

1
Mar 13, 2023, 6:38 PM

but the asset itself is still there along with the interest due. But, if you are using this for collateral, you no longer has as much so it could cause a problem.

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Banks will sell underwater mortgages (at loss) to get cash


Mar 14, 2023, 9:11 AM [ in reply to This is different than last time. The mortgages are fine. ]

Sure banks will sell selected mortgages among their portfolio if they need to raise cash.

Banks will first choose to sell those mortgages which can be sold by creating the lowest accounting losses.

Xxxxxxxx

As everyone knows, most home loan mortgages are sold by the banks to Fannie Mae.

The banks hold those mortgages which did not conform to Fannie Mae criteria.

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probably car loans.


Mar 13, 2023, 10:43 PM

And that could affect the credit unions.

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The mortgage REIT I've got way too much stock in


Mar 14, 2023, 8:04 AM

is hurting extra right now.

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