MBS RECAP: Boxer Bill Makes PM Rounds, Mixed Blessing

Posted To: MBS CommentaryMBS Live : MBS Afternoon Market Summary MBS were already having sort of a shaky day versus Treasuries, but had been doing a decent enough job of holding their ground until around 3pm. The reanimated Boxer/Menendez bill began making rounds around that time, and although many of its provisions would be welcome additions to originators ability to offer HARP loans, those same provisions are somewhat unpalatable for MBS investors. Suffice it to say that any legislation that increases the ease with which borrowers can refinance, stands the chance to increase prepayment speeds of MBS. This decreases the value and net/net, has a negative impact on price. The fact that Treasuries are also trending weaker in the afternoon and that MBS are characteristically illiquid at this time of day only exacerbates...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.http://www.mortgagenewsdaily.com/mortgage_rates/blog/294960.aspx| Call Bonnie Kelly for all your real estate needs: 505-350-8672 @ uwad.com