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Securitization

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Fannie Mae Paydowns Drop as Buyouts Rise 

Aug 07, 2009By

[Update 1: adds eMBS research] As the rate of refinancing begins to abate, securitization researchers at Barclays Capital are expecting the recent drop in Fannie Mae [stock FNM][/stock] 30-year paydowns to continue, eventually reaching a 10-15% rate overall. Mortgages that are currently pooled for securitization are showing delinquency buyouts for the first time, according to a strategy report by the firm. This trend is also likely to accelerate as more mortgages are removed from the pools.

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