MBS investors are likely to charge a pay-up for securities backed by mortgages underwritten with VantageScore — at least until they’re confident prepayment speeds won’t accelerate.

Some large banks repositioned their portfolios to favor Ginnie pass-throughs during the first quarter of 2026, and several regional banks closed mergers that grew their MBS holdings. (Includes two data tables.)

Ginnie Mae President Joe Gormley said changes to the loss-mitigation policies for loans backed by FHA and the Department of Veterans Affairs revealed that some issuers had higher exposure to riskier loans.

New Fed Chair Kevin Warsh has long criticized the size of the Fed’s balance sheet, in particular, its massive holdings of agency MBS.

Without much relief in sight for borrowers’ pockets, the industry expects growth in non-agency securitizations from loans priced with higher risk premiums by Fannie Mae and Freddie Mac.

The auto and unsecured loan sectors are facing headwinds, while the credit card sector has a more stable outlook.

Consolidation among rights holders of music royalties will lead to less issuance but should boost deal performance as issuers will have more diversified asset pools, according to KBRA.

Early interest in the VantageScore 4.0 pilot has been strong, but participants note that the new score can be up to 100 points different from Classic FICO.

Economists have dialed back their more optimistic expectations for mortgage rates this year after Iran war-triggered inflation undid the rate boost from MBS purchases by the GSEs.

The final rules clarify that the National Bank Act preempts state interest-on-escrow laws and codify national banks’ powers to maintain mortgage escrow accounts and to set their terms and conditions.