Rising interest rates have slowed a recent run of unexpectedly high prepayments of government-insured mortgages, making servicing rights for loans held in Ginnie Mae securities more attractive to investors.
Ben Carson is facing a turbulent housing market as he takes the reins of the Department of Housing and Urban Development, with mortgage rates rising, inventories tight and home prices higher.
Simultaneous spikes in home prices and mortgage rates have put an unusual squeeze on borrowers' purchasing power and require lenders to be proactive about protecting their loan pipelines.
With mortgage rates and housing prices both expected to go up this spring, lenders are facing a decision on how they will adjust to the decline in refinancings and overall lending volumes.
Republican lawmakers are citing a recent report that delinquencies rose for loans guaranteed by the Federal Housing Administration as a reason to delay a premium cut, but economists suggest the uptick is related to seasonal issues.
