FICC Focus Mortgage Market Update With BI’s Erica Adelberg: Macro Matters
Jul 24, 2025
Erica Adelberg, Chief Mortgage Strategist for Bloomberg Intelligence, dives into the evolving mortgage-backed securities market. She discusses the upcoming policy shifts, including GSE privatization and the adoption of VantageScore, which broadens mortgage access for first-time buyers. Adelberg highlights the changing dynamics of loans and the effects of the Federal Reserve's decisions on market stability. She also tackles the implications of new policies on veterans and the potential for increased refinancing as mortgage rates decline.
AI Snips
Chapters
Transcript
Episode notes
GSE Conservatorship and Policy Shifts
- Since 2008, Fannie Mae and Freddie Mac have been in government conservatorship with evolving regulatory control.
- Policy shifts, especially under the current administration, influence how these agencies operate and their corporate structure.
VantageScore Impact on Mortgage Credit
- The FHFA now allows mortgage originators to use VantageScore instead of FICO for credit evaluations.
- VantageScore incorporates rental and trended data, potentially broadening mortgage credit access without worsening default predictions.
Rising Specified Pools in Mortgage Market
- Growth in specified pools is rising due to larger loan sizes and risk characteristics, especially in Ginnie Mae sectors.
- This shift decreases MBS index supply and increases complexity in traditional TBA markets.