Amid pressure from some lender trade groups, Fannie Mae and Freddie Mac increased their investments in agency MBS during the third quarter. The move can drive down mortgage rates and goose GSE profits. (Includes data table.)

Beginning in December, the Federal Reserve will adjust its balance sheet strategy and no longer reinvest proceeds from payoffs of agency MBS into more MBS.

Pennymac is issuing a non-agency MBS with owner-occupied loans that are eligible for sale to the government-sponsored enterprises.

Non-agency MBS issuance is up sharply this year and is expected to rise again in 2026. Delinquencies on the loans are increasing but investors are counting on cushions from home equity to help prevent losses.

Rising delinquencies on auto loans and recent bankruptcy filings by subprime auto lenders may have spooked some ABS investors.

MBS is the place to be right now with average daily trading volumes at their peaks for the year.

Feeder funds can ease the barrier of entry for investors into the residential mortgage loan market. Fitch set new rating criteria for the asset.

A reduction in loan-level pricing adjustments for Fannie Mae and Freddie Mac is being discussed.

The prospects of a year-end stock offering didn’t prevent the wholesale reshuffle in Fannie Mae leadership.

Lending to nonbanks is under scrutiny due to some recent performance issues outside of the residential mortgage market.