Vice Capital Markets President Troy Baars today urged lenders to explore custom Ginnie Mae pools as part of their overall execution strategy in light of recent increases in Ginnie Mae security volume, along with renewed investor interest in custom pools.
“Refinancing of existing mortgages has been driving an uptick in Ginnie Mae-insured securities, as investors now have cash to reinvest,” said Baars. “Because specified pools offer prepay protection that exceeds current multi-issuer pools, investors are willing to pay more for these securities to help protect their premium pricing from rapid payoffs. As such, now is the perfect time for lenders to consider adding custom Ginnie Mae pool deliveries to diversify their overall hedging strategy and improve their bottom line.”
Vice Capital Markets has been helping independent mortgage lenders, credit unions and banks to maximize their secondary market execution by structuring a variety of custom pools optimized to generate the highest possible net cash flow and servicing value. Using its extensive dealer relationships and active trade desk, Vice Capital Markets is able to identify pay-up trends and track all custom pay-ups to amplify hedging activities and deliver immediate cash value.
“What distinguished Vice Capital Markets from other hedging firms is the combination of personalized service and the level of experience behind our trade desks,” Baars added. “Our clients know they can pick up the phone at any time during the business day to reach a Vice executive and discuss their hedging strategy. Additionally, our traders possess on average 10 years of experience, which provides our clients with peace of mind knowing their trade activities are being managed by a senior-level staff person.”
This news item originally appeared in MBA NewsLink.