CONTENTS
Prepayment Analysis
80-90 Cur LTV S-Curve will shift 20% up in Q1 2025 due to GSE's PIW eligibility change
Conventional S-Curve – 2024 S-Curve is much faster than 2023 & closing on 2022
GN FHA S-Curve – 2024 S-Curve is much faster than 2023 & closing on 2022
VA S-Curve – 2024 S-Curve is even faster than in 2021
OTM Collateral Prepayments – CPRs differ by 4% depending on loan size
Credit Analysis
FHA DQs – Four year high on FHA DQs
VA VASP Program – GN VA D90+ buyout rate increase was driven by PennyMac
Prepayment Analysis
80-90 Cur LTV S-Curve will shift 20% up in Q1 2025 due to GSE's PIW eligibility change.
FHFA Announces Expanded Appraisal Waiver Eligibility Criteria
On 28 October 2024, the FHFA announced the maximum LTV of purchase loans eligible for appraisal waivers (PIW) will increase from 80% to 90% on GSE loans effective Q1 2025. This should increase the speeds on 80-90 LTV PIW purchase loans by about 20% which is the difference between speeds PIW and No PIW loans (see the chart below).
(Source: IVolatility MBS Data Insights)
Conventional S-Curve – 2024 S-Curve is much faster than 2023 & closing on 2022
(Source: IVolatility MBS Data Insights)
GN FHA S-Curve – 2024 S-Curve is much faster than 2023 & closing on 2022
(Source: IVolatility MBS Data Insights)
GN VA S-Curve – 2024 S-Curve is even faster than in 2021
(Source: IVolatility MBS Data Insights)
OTM Collateral Prepayments – CPRs differ by 4% depending on loan size
(Source: IVolatility MBS Data Insights)
Credit Analysis
FHA DQs – Four year high on FHA DQs
(Source: IVolatility MBS Data Insights)
VA VASP Program – GN VA D90+ buyout rate increase was driven by PennyMac
(Source: IVolatility MBS Data Insights)
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