The nation’s two largest “mREITs,” Annaly and AGNC, continued to shrink their securities holdings in the first quarter, but with the Fed moving to the sidelines, that trend could be ending.

The Securities and Exchange Commission had charged James Im, a former bond trader for Nomura Holdings, with fraud for inflating the prices of MBS he bought from and sold to investors.

With rates rising for much of the year, MBS trading has been weak but not exceedingly so. But thanks to recent carnage in the stock market, bonds may be “in” again.

Fannie Mae’s first-quarter earnings declined due to higher loan loss provisions, while Freddie Mac posted higher profits on the back of credit-related income. (Includes data chart.)

The Federal Open Market Committee will begin letting agency MBS run off on June 1, but has no plans to actually sell securities.

Nonbanks will need to provide more details about how they value MSRs as Ginnie works on its new capital rules. The good news: MSRs are worth a lot more these days.

While investors in fix-and-flip and other business-purpose loans are taking a closer look at loan characteristics and lenders’ practices, lenders are adjusting and considering locking in longer-term financing.

The market for residential MBS backed by second liens is showing signs of life once again and nonbanks are rolling out new products. Is a renaissance afoot?

The SEC’s proposal on disclosure requirements and other standards for hedge funds, private equity funds and venture capital funds could have negative impacts for CLOs, SFA and others warn.

The consumer sectors to watch out for include student loans, subprime auto and retail credit cards, according to Fitch Ratings.