Blog Talk Radio Show Summary July 11, 2011: Future of Mortgage Banking (Part II)

2017-12-20T17:34:15+00:00 July 12th, 2011|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , |

Lykken on Lending is hosting a series of blog talk radio shows about the future of mortgage banking.   This week’s show was focused on the future of the secondary mortgage market.  Will it be different?  Will the mortgage-backed security structure survive?  Will the 30 year fixed rate mortgage remain an option for borrowers?  Dr. Michael Lea, of the Center for Real Estate at San Diego State University, joined the show today to give his opinions on the US secondary mortgage market and compared the US market to what works in overseas mortgage markets.  According to Dr. Lea, among his other comments and opinions, the 30 year fixed rate mortgage is at risk (at least it will not be the predominant instrument), the industry needs a better balance of outlets (90% government guaranteed MBS is too much of one thing), the mortgage-backed security as a vehicle will survive but needs some tweaking (like skin in the game), and covered bonds have significant hurdles to overcome before they will be widely available in the US.  He also thought borrowing rates will rise as the secondary market prices in the full cost of the risk, but he thinks the increased yields on private [...]

Feb 22, 2010 BlogTalkRadio Podcast

2017-12-20T17:34:19+00:00 March 31st, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , |

Here is the summary and podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline’s Joe Farr. Mortgage rates rose a little last week due primarily to comments made by one of the Fed Bank Presidents and comments made by Fed members during the 1/27 Fed meeting as reported in the minutes released last Wednesday. These comments referred to some Fed members desire to begin to sell parts of its $1.0 trillion portfolio of mortgage backed securities (MBS) “sooner rather than later. This caught the market by surprise as just the week before Fed Chairman Bernanke provided guidance that selling MBS would not occur any time soon. Mortgage related legislation is virtually at standstill. Both the snow days in Washington and the Republican victory in Massachusetts are the cause for the slowdown. Covered bonds were discussed as a potential method of financing non-agency mortgage loans, primarily jumbo loans. Only large on-balance sheet lenders will be likely issuers of covered bonds. The rules and regulations surrounding covered bond issuance are still being developed, but when done covered bonds may become a useful funding source for US banks much as there are for Canadian and European banks today. MBSQuoteline supplies [...]