Caps for GSE loans could jump by as much as 19%.

Both Fannie Mae and Freddie Mac have now completed tender offers on seasoned CRT notes to reduce interest expense on seasoned deals.

Fannie Mae will resume credit-risk transfer program after FHFA proposed capital relief for the transactions. Investors look forward to new opportunities.

Analysts say dollar rolls and spec pools still provide an opportunity for investors in the agency MBS market.

The new PSPA will allow Freddie Mac and Fannie Mae to continue retaining earnings until they reach the regulatory minimum capital — almost $283 billion combined.

Going forward, mortgages will qualify for the QM safe harbor if the annual percentage rate on the loan doesn’t exceed the average prime offer rate by more than 150 bps.

Spreads between mortgage rates and interest paid on MBS have fallen to about 75 basis points. The long-term average is closer to 110 bps.

In areas where home price appreciation rises faster than conforming loan limits, Redwood's network of correspondent lenders gives it an edge in the jumbo loan market.

With overnight funding in the agency repo market hovering around 15 basis points and term repo rates a shade above the one-month LIBOR, yields for agency mREITs could edge upward, KBW analysts predict.

According to former Fannie Mae CFO Tim Howard, the re-proposed capital requirements are almost 40 times the average of that indicated by stress tests conducted on the GSEs last year.