A financial institution is originating adjustable-rate mortgages for securitization through government-sponsored enterprise securities.
In a statement Wednesday, Navy Federal Credit Union revealed
a new round of marketing to large institutional investors of its 5/5 ARM product.
According to the Vienna, Virginia-based firm, the loans will be pooled into Fannie Mae mortgage-backed securities.
Since 2015, Navy Federal reports that 5/5 ARM production has grown by 11 percent. Expectations are for further increases.
“Fannie Mae has a tremendous reach, and we feel this is a fantastic opportunity for institutional investors,” Navy Federal Assistant Vice President, Secondary Marketing Pete Amstutz said in the statement.
Amstutz added that the product shows that “government-sponsored enterprises are stepping up their presence in the mortgage market outside of the traditional 15-year and 30-year fixed-rate mortgage.”