Executives from both government-sponsored enterprises (GSEs) participated in a session on Tuesday morning during the Mortgage Bankers Association (MBA) Secondary and Capital Markets Conference and Expo in New York.
“I totally understand where the question is coming from. But I don’t think this is really a question about the process. We have not changed our approach or process,” Devang Doshi, senior vice president of capital markets at Fannie Mae, said.
“This is really an issue around economics. And the reason I say that is when you think about the repurchase requests made, let’s say from the latter half of last year, even the middle of last year, that reference collateral was largely maybe underwritten in the COVID environment,” Doshi added.
The Fed has increased interest rates, and mortgage rates have had the tightest financial conditions since the 1970s, Doshi said. Ultimately, loans that lenders underwrote at higher coupons are now down 20 basis points.
“That’s just the duration. That is not a reflection of the underlying characteristic,” Doshi said.
Since 2019, Fannie Mae has been between 20 and 40 basis points per purchase request rate, which varies lender by lender, Doshi said. The rate is estimated by dividing the number of repurchase requests by the volume over the last 12 months.
“We’re on a slightly higher range because we’re now in a purchase market as a numerator and denominator effect in that calculation,” Doshi said. “Again, as we move through the course of time, and we move away from this COVID-era lows, the economics become less of a burden.”
Doshi noted that 80% of the repurchase requests in January were from the 2022 and 2023 vintage. It’s now at 86.5% to 87%.
Client experience
Kevin Kauffman, vice president of single-family client engagement at Freddie Mac, agreed that volumes in 2020 and 2021 were massive and led to more quality control defects and repurchases.
However, according to Kauffman, “at the end of the day, risk management to this organization, to this industry, to all of us combined, this is a mutual responsibility, right?”
“There is no doubt that there are those that have defects that are real defects, but how do we minimize the noise from reality?” Kauffman asked.
Freddie Mac engaged with about a dozen lenders to identify the pain points when working with the enterprise.
“I think what we’ve seen over this even short period of time is that those types of engagements have led to a better outcome,” Kauffman said. “We’re not there yet as an industry. But I think in the end, I’m going to continue to say it’s a mutual responsibility of the industry to manage our risk.”
“We believe that we’re really close to making some changes based upon our interaction with you in regards to how we get to this problem,” Kauffman said.
HousingWire reported in early May that there is a concern among IMBs that Fannie and Freddie are being too aggressive in pursuing the repurchase option on loans with minor underwriting defects that could be cured far short of a draconian buyback demand.
An executive with the MBA confirmed the industry group is currently in discussions with the agencies over that concern.
Earlier this week, I wrote about the problem with trying to buy the perfect gift. Sticking with that gift theme, there’s a question that’s been on my mind: If you’re invited to an engagement party, a bridal shower, and a wedding ceremony all for the same couple, and you attend all three, do you give a gift at each event?
See, I’ve been invited to a few weddings this year. And it seems like the etiquette “experts” all agree that each event requires a separate gift, according to tradition. Here are some examples from around the web:
“If I bring a gift to the bridal shower, should I still bring a gift to the wedding?” a question Peggy Post, co-author of the 18th edition of Emily Post’s Etiquette is accustomed to answering. Her advice is, basically, that a shower gift is not a wedding gift. “I know some of these shower gifts are expensive, but be smart so you don’t have to break the bank.”
“I’m going to both the wedding shower and the wedding. Must I buy gifts for both?” “Unfortunately, yes. ‘That’s part of the obligation you agreed to when you RSVPed for both,’ says [Mark] Kingsdorf,” bridal consultant at The Queen of Hearts Wedding Consultants — Real Simple’s The Essential Guide to Buying Wedding Gifts.
“According to custom, the answer to whether to give gifts for engagements, showers and weddings is: maybe, yes and yes.” — How Stuff Works.
Hmm, exactly how is one supposed to “be smart” about expensive gifts? And calling gifts an obligation? It kinda puts a bad taste in my mouth, like it’s sucking the joy out of giving a gift in the first place.
Guests Say, “Forget the Experts!”
A lot of wedding guests disagree with the expert advice. For a few examples, I did a very scientific poll (of Yahoo! Answers responses). Here are a few that say that multiple gifts are not an obligation:
“Do not feel obligated [to give a wedding gift after giving a shower gift]. You did give them a gift already, so if you do want to gift them something, you can, but you don’t absolutely have to.”
“There’s no definitive ‘proper’ way to do this, other than the etiquette stipulation that the shower is a gift-giving event, and the wedding is not. (Obviously, most people do want to give wedding gifts, but that’s tradition, not a requirement).”
“Etiquette says NOTHING about purchasing multiple gifts for one wedding. You gave a gift, that’s all that you need to concern yourself with. No more gift giving is necessary.”
I always thought that you give a separate gift for the shower and the wedding. As for engagement parties and bachelorette parties, I have no idea. None of my friends and family members have had either of those.
But when I got married, all of our friends and family members gave one gift, even if they attended the shower and the wedding. (This was definitely fine by me — I’m rather shy and I actually would’ve been embarrassed if people bought me multiple gifts. My aunt basically had to force me to register for gifts in the first place.)
And then, to confuse things even more, Miss Manners has a take that’s somewhere in between one-gift-only and gifts galore:
“Engagement presents were a rarity until a decade or two ago. Perhaps a favorite aunt might be so moved, or a prospective mother-in-law might give the bride a family bauble to wear at the wedding. But no one showed up with a present at an engagement party, because the purpose of the party was for the parents to announce the engagement as a surprise. Multiple showers are warranted only when the bride or the couple has more than one distinct set of intimate friends. They should not be catch-all occasions, and nobody should be expected to attend more than one. Anyway, shower presents should be charming but trivial, and not comparable to wedding presents.”
No one agrees! And basically, I just want to do what everyone else is doing. I’m not looking to take some kind of gift-giving stance at my husband’s coworker’s wedding. I also don’t want to be the lone weirdo giving multiple gifts.
So I’m simply wondering, what does everyone else do? If you’re invited to multiple events and you want to attend and celebrate with the bride and/or couple, when do you bring a gift?
Inside: Find money cake ideas! Learn how to make a money cake or buy pre-made kits. This guide has you covered with ideas for creating an edible centerpiece that will wow your guests.
What’s more fun than a money cake? A cake that pulls in money, of course!
This easy-to-make cake is perfect for any gift-giving occasion. All you need is a little bit of creativity and some basic baking skills.
Can you imagine yourself walking up to a graduation or wedding carrying a beautiful money cake?!?! What a way to get people talking.
Equally important, making a money cake is easier than it seems!
With this guide, you’ll be able to make a money cake that looks and tastes amazing. So let’s get started!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is a money cake?
A money cake is a unique and creative way to give someone a gift of money.
They are a fun surprise that adds an extra element of excitement to gift-giving.
Money cakes are perfect for special occasions like birthdays, weddings, graduations, and holidays.
How many bills does it take to make a money cake?
The number of bills needed depends on the size of the cake you want to make.
Typically, most money cakes use 50 one-dollar bills. However, you can use bigger bills for a larger gift.
The number of bills will be decided on how much you want to spend.
This is one of the popular money gift ideas!
Two Different Ways to make a money cake
Money cakes are a fun and unique way to gift money for special occasions.
Here are a few different techniques to make a money cake:
Rolled-up bills: With this design, you are using dollar bills as decoration.
Real cake with a pull out kit: This would be a complete surprise as the money is hidden underneath the traditional edible cake.
Making a money cake is a fun and exciting way to gift money for special occasions.
You can create a unique and personalized money cake that will surely surprise and delight the recipient.
What materials do I need to make a money cake with rolled-up Dollar Bills?
If you are looking to create a crafty masterpiece using dollar bills, this is exactly how to do it.
To make a Real money cake, you will need:
Crisp bills (use as many as you want, but 50 one-dollar bills are shown in the photo)
A pencil or dowel
Small clear hair rubber bands
Large rubber bands
Round Styrofoam discs or round cookie tins (2-3 of varying sizes)
Ribbon
Removable tape or glue dots
Glue gun or double-sided tape dots
Embellishments to decorate ribbon and top of cake
One round cake board or paper doily (optional)
To assemble the money cake, follow these steps:
Roll one dollar bill around the pencil or dowel and secure it with a small rubber band.
Place one large rubber band around each Styrofoam disc.
Tuck the rolled bills under the rubber bands in a standing position until the Styrofoam discs are completely covered.
Cover the large rubber bands with ribbon and secure dollar bills in place with removable glue dots or tape.
Embellish the cake using stickers or other decorative items.
Adhere the top layer of the cake to the bottom layer using a glue gun or double-sided tape.
Place the completed cake on a cake board and/or paper doily (optional).
Remember to have fun and be creative with your money cake!
Money Cake Assembly Tips:
Make sure you have a sturdy bottom to withhold the weight of the cake.
Use a sturdy and well-constructed cardboard tube for the money.
How to Make an Edible Money Cake
What better way to eat your cake than find money inside!?!? Well, this is exactly how to make a money cake.
To make an edible money cake, you will need a homemade or store-bought cake, a cardboard tube or prepaid money cake kit, dollar bills for money, ribbon or string, plastic wrap and/or aluminum foil.
Step #1 – Make a Cake or Buy a Cake
First, you need to decide if you want to bake a cake or buy a store-bought cake. This is 100% your decision. If you decide to bake a cake, our family LOVES this chocolate cake recipe.
For this type of money cake, you need a sturdy base and size. You need a wide cake (at least 9-inches) and tall (about 4 inches)
If you are planning on giving a small amount of money, then you can do a smaller cake. But, you need enough space to hide your cash.
Please note… do NOT bake the money inside the cake. You will insert the money after baking.
Step #2 – Prep the Money Roll
The easiest way is to buy a pre-made money kit to put the money inside. You can buy them here.
If you want to DIY your money roll, here are the instructions:
Start with a sturdy cardboard tube and cut a slit in the tube the same length as the bags.
Insert money into each vertical treat bag.
Tape the treat bags together to make a long strand.
Roll up the money starting from one end and place it inside the cardboard tube, gently pulling out a few inches of one bag and leaving the rest inside the tube.
Tie a ribbon or string to the end of the treat bag and attach it to a lollipop stick. This is what you will use to “pull the money” out.
Wrap the cardboard tube with plastic wrap leaving an opening for the money to come out. You may use aluminum foil for more stability.
Or buy a money pullout kit!
Step #3 – Assemble the Cake
Wash your hands thoroughly before handling the cake. Additionally, make sure the cardboard tube and treat bags are also clean and food-safe.
First, you need to cut out the cake to insert your pre-made money kit or your DIY money roll.
Place the roll of money into the cardboard tube and gently pull the money through the tube.
Cover the top of the tube with cake/frosting scraps. Make sure to leave the string visible, so you can reveal the money when it’s time to serve the cake.
You can always use the extra cake to make any of these leftover cake recipes.
Step #4 – Decorate the Money Cake
Now, it is time to add your own personal touch by decorating the cake with additional frosting, sprinkles, chocolate chips, ribbon, or other toppings.
You can also attach the money roll to a stick using a homemade or store-bought lollipop, making sure the stick is strong and long enough.
It is important to note that the money should be clean and the money roll clean because you want your cake to be safe for consumption.
Step # 5 – Surprise Time at the Party
Cutting into a money cake can be a surprising and exciting experience for any occasion.
As the cake is sliced into, the recipient will discover that there is actually money inside to pull out and enjoy. This unique and thoughtful gift is perfect for birthdays, weddings, graduations, or any other special event.
Is Making a Money Cake Hard?
While it may seem complicated, making a money cake is not as difficult as it looks.
With time and effort, anyone can create this memorable surprise for their loved ones.
Simply follow the tutorial and tips provided above, and you’ll be able to create your own DIY money cake that will be sure to impress.
If you want the easy button, click here to buy one today.
Buy Money Cake Ideas Near Me
To find and buy money cake ideas near you, start by searching for cake decorators in your area.
Ask if they offer a surprise money pull out kit for their real cakes and if they can provide a quote.
More than likely, you will have to provide the money cake kit to the decorator to add to the cake before decorating.
Remember to give them enough time to create the cake and then enjoy a unique and memorable money cake for any special occasion.
Are there any websites that offer money cake kits?
Yes, there are several websites that offer money cake kits.
These kits provide all the necessary supplies and instructions to create a money cake, making the process easier and more convenient. They are especially useful for those who may not have the time or skills to create a money cake from scratch.
Additionally, some kits offer unique features such as surprise money pull-out kits or customizable cake toppers.
FAQ
It is generally cheaper to make your own money cake from scratch than to purchase a pre-made one from an online seller.
Additionally, making your own money cake allows for customization and a personal touch that store-bought money cakes may not provide.
For a typical money cake, the number of bills used varies depending on the occasion.
With birthday money cakes, the money cake contains $20-50 rolled US dollar bills, with graduations being about $50 – $100 rolled up and placed on top for the recipient to pull.
For weddings and engagements, bills can total $100-200.
Which Money Cake Ideas Are Your Favorites?
Money cakes are a fun and unique way to celebrate special occasions!
With a little creativity, you can make a money cake that is both fun and practical. Whether you use your own materials or buy a pre-made kit, you can create an impressive centerpiece that will be the talk of the party.
Learn how much to give for high school graduation before you start making your money cake!
Moreover, making a money cake allows you to incorporate the gift of money in a unique and surprising way, making it a perfect surprise for birthdays, weddings, graduations, or any special event.
Overall, making a money cake is a fun, creative, and cost-effective way to give a special gift.
Know someone else that needs this, too? Then, please share!!
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