Are there performance differences between FHA insured loans and those guaranteed by the VA?
Issuance of Ginnie Mae collateral rose significantly following the recession and mortgage crisis. Through May of this year, fixed-rate Ginnie Mae issuance stands at $174 billion which is approximately 35% of total GSE volume. Many lower credit borrowers whose needs were met by the subprime and alt-A markets shifted to FHA loans.
Ginnie Mae pools are comprised of loans guaranteed by either the FHA or VA. This analysis will try to discern if there are significant differences in the prepayment speeds or serious delinquencies between the two groups for 2014 vintage 4% coupon loans.
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