HALISTER1: FHA MIP Cut Unlikely With New Administration, BofAML Says

FHA MIP Cut Unlikely With New Administration, BofAML Says

(Bloomberg) -- FHA MIP cut in the foreseeable future is doubtful with a new administration coming into power and “highly fragile state” of GNMA MSR pricing, BofAML Agency MBS strategist team led by Satish Mansukhani writes in note.
  • This month likely to see release of FHA’s financials and capital reserve position on its MMI fund
    • Strong housing, home price appreciation and high volume suggest it will meet 2% capital reserve target
  • GNMA MSRs pricing look vulnerable to prepay risk on top of lack of capacity, liquidity and funding and capital
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
MIP TU (MIP)

People
Satish Mansukhani (Bank of America Corp)

Topics
Federal Housing Administration

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