The revised proposals would reduce capital requirements for banks, both for MBS holdings and whole loans in portfolio. The change would provide incentives for banks to retain more originations in portfolio.

Some 68.0% of mortgages originated in 2025 were sold into MBS. Securitization rates were stable across most products, except for expanded-credit mortgages, where the securitization rate increased sharply. (Includes data table.)

Morningstar DBRS has proposed loosening its rating criteria for residential MBS, given the strong performance of loans originated after 2008.

Mortgages for medical doctors are usually retained in bank portfolios.

Investors are showing increased interest in securitizations of traditional home equity loans and home equity investments.

Despite some concerns tied to fraud and performance, investors are optimistic that issuance volume will increase this year.

Agency-eligible loans are frequently being delivered to non-agency MBS instead of the GSEs.

Pending proposals from the Fed would impact MBS market; Moody’s looks to rate securitizations of home equity loans.

Issuance of expanded-credit mortgage-backed securities declined during the fourth quarter of 2025, marking the first quarterly decline in issuance for the sector in two years. (Includes three data tables.)

Lower interest rates and potential policy changes are expected to help drive an increase in prepayment activity this year.