{"title":"How Making Agency Mortgage-Backed Securities Portable May Impact Housing and Mortgage-Backed Securities Investors","authors":"Jiawei “David” Zhang, Yihai Yu, Joy Zhang","doi":"10.3905/jfi.2023.1.176","DOIUrl":null,"url":null,"abstract":"The current high mortgage-rates environment has reduced mobility for the majority of agency fixed mortgage borrowers, contributing to a stalled housing market. Making mortgages portable would help relieve these borrowers, and revive the housing market and national economy. By charging borrowers a portability exercising fee, paid to MBS investors, the portability option can also enhance MBS valuation, making it a win-win for borrowers and investors. Agencies and regulators can work with MBS investors, and other stakeholders, to modify existing mortgage and MBS contracts to add the portability option to existing and future agency mortgages.","PeriodicalId":53711,"journal":{"name":"Journal of Fixed Income","volume":"12 2","pages":"114 - 119"},"PeriodicalIF":0.0000,"publicationDate":"2023-12-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Fixed Income","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.3905/jfi.2023.1.176","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
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Abstract
The current high mortgage-rates environment has reduced mobility for the majority of agency fixed mortgage borrowers, contributing to a stalled housing market. Making mortgages portable would help relieve these borrowers, and revive the housing market and national economy. By charging borrowers a portability exercising fee, paid to MBS investors, the portability option can also enhance MBS valuation, making it a win-win for borrowers and investors. Agencies and regulators can work with MBS investors, and other stakeholders, to modify existing mortgage and MBS contracts to add the portability option to existing and future agency mortgages.
期刊介绍：
The Journal of Fixed Income (JFI) provides sophisticated analytical research and case studies on bond instruments of all types – investment grade, high-yield, municipals, ABSs and MBSs, and structured products like CDOs and credit derivatives. Industry experts offer detailed models and analysis on fixed income structuring, performance tracking, and risk management. JFI keeps you on the front line of fixed income practices by: •Staying current on the cutting edge of fixed income markets •Managing your bond portfolios more efficiently •Evaluating interest rate strategies and manage interest rate risk •Gaining insights into the risk profile of structured products.
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