There are new emerging transactions related to Ginnie Mae MSR notes.

KBRA assigned a BBB- rating to a new series of servicing-related term notes from Freedom Mortgage in the Ginnie Mae market. The notes are backed by certificates representing participation interests in Ginnie Mae mortgage servicing rights, with features that include the ability to transfer servicing if Freedom Mortgage defaults. This rating is lower than a similar Pennymac transaction, which received a BBB rating. Both Freedom Mortgage and Pennymac are key players in the Ginnie Mae market, which guarantees securitizations of home loans backed by public entities like the FHA and VA. Recently, market attention has increased on Ginnie servicing due to shifts in conditions, including increased prepayments for 6.5% coupons reflecting activity in 7% mortgages.

– KBRA assigned a BBB- rating to new series of term notes from Freedom Mortgage in the Ginnie Mae market
– Notes are backed by participation interests in Ginnie Mae mortgage servicing rights, with ability to transfer servicing if Freedom Mortgage defaults
– Rating is lower than similar Pennymac transaction, which received a BBB rating
– Freedom Mortgage and Pennymac are key players in the Ginnie Mae market, which guarantees securitizations of home loans backed by public entities like FHA and VA
– Increased market attention on Ginnie servicing due to shifts in conditions, including increased prepayments for 6.5% coupons reflecting activity in 7% mortgages



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