Purchases of refinance loans since December 2020 generated roughly $6.6 billion in adverse market refi fees for Fannie and Freddie, boosting them to a seven-year high in net income in the second quarter. (Includes data chart.)

With new restrictions on GSE sales, lenders are increasingly turning to the non-agency MBS market to sell mortgages for investment properties. Issuers include new and established participants.

Why compete against the Fed for agency MBS? Sometimes, shrinking is a better strategy, which is what the mega "mREITs" are doing.

Late last month, inter-dealer brokers began using SOFR for dollar swaps, allowing ARRC to finally recommend use of Term SOFR. 

It’s easier for banks to complete buyouts of mortgages from Ginnie MBS than nonbanks due to banks’ funding advantages. Nonbanks are also increasingly modifying mortgages rather than offering partial claims. 

KinderCare is the largest for-profit childhood education provider in the country. The CMBS is being issued by National Realty Trust, which received a mortgage on 549 properties where KinderCare operates.

The commercial MBS delinquency rate continued its downward movement for the 13th month in a row. Nearly all sectors of the market showed improvements on a monthly basis in July. 

The SFR giant is gearing up to buy thousands of newly constructed homes, which means it’s headed to the capital markets to finance the maneuver.

The mortgage giant’s $3.6 billion profit for the second quarter benefited by as much as $1 billion in revenue from the controversial adverse market refinance fee.

Ginnie Mae buyouts have remained strong this year as more issuers try their luck at the rehab game. But how long might this trade last? Several more quarters, at least. (Includes data chart.)