Dwarfs Chase Ginnie Midgets as Lenders Seek FHA Debt: Mortgages
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Midgets are losing ground to dwarfs in the mortgage bond market as borrowers lock in Federal Housing Administration loans ahead of fee increases.
Midgets, the name used by traders to describe 15-year mortgage securities guaranteed by Ginnie Mae, including FHA loans, fell last month by a record relative to 15-year Fannie Mae securities called dwarfs. The names refer to the loans’ maturities being shorter than more popular 30-year debt.