The average daily trading volume in agency MBS climbed to $226.1 billion in May, the second consecutive monthly increase, according to figures compiled by the Securities Industry and Financial Markets Association.
Credit-risk transfer activity at the government-sponsored enterprises is expected to shift from debt note issuance that has dominated the program to more front-end deals with private mortgage insurers and mortgage lenders, the Urban Institute said.
With loan production of non-qualified mortgages continuing to gather a head of steam, Wall Street financiers, conduits and warehouse lenders increasingly are taking a keen interest in the sector.
Ginnie Mae continued to lead the growth in agency single-family MBS outstanding during the first quarter of 2018, according to a new Inside MBS & ABS analysis. [Includes three data charts.]
The Federal Housing Finance Agency this week unveiled a proposed rule on capital standards for Fannie Mae and Freddie Mac, acknowledging that the rule would not be imposed on the two government-sponsored enterprises as long as they’re in conservatorship.
Mortgages originated in recent years for investment properties have performed well, helped by improvements to underwriting standards after the financial crisis, although there are concerns about underwriting practices in the non-agency market.
The Dodd-Frank Act does not require the Consumer Financial Protection Bureau to provide public access to its consumer-complaint database, but the law doesn’t prohibit the bureau from doing so, some law professors said.
Although federal banking regulators are still toiling with language that will ease restrictions on how much mortgage servicing rights can count toward Tier I capital, depositories are aggressively reasserting their presence in the MSR market.