Posted To: Pipeline Press

Would you rather loan $200,000 to a Danish buntmager (furrier) or the United States Government? Well, while the industry is digesting the news that Guaranteed Rate has entered into a definitive agreement to acquire Stearns Holdings, LLC, from funds managed by Blackstone, and before you answer this pop quiz on risk, you should know that the U.S. 10-year “risk free” T-Note is currently yielding 1.00 percent , versus Danish 20-year mortgages at 0 percent . Not much prepayment risk there! Speaking of risk, Fannie Mae and Freddie Mac know a lot about it, but many in the industry are wondering about the FHFA’s position on whether the GSEs can purchase loans where the borrowers seek forbearance due to a COVID hardship after closing, but prior to delivery to the GSEs. Given the hundreds…(read more)

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Source: Mortgage News Daily