FHFA and Treasury are close to signing a letter agreement that will eliminate the profit sweep by month-end, according to the agency’s director.

The average daily trading volume in agency MBS reached a yearly low in August as rates troughed. A rebound could lay ahead. Or maybe not.

Issuers and investors in the securities market are divided on what exactly should be done with the qualified mortgage “patch.”

Year-to-date CLO issuance lagged behind the pace set in 2018 because of a slowdown in refinance transactions. Octagon Investment Partners was the most active sponsor at midyear.

The Treasury Department envisions a multi-year recapitalization of the GSEs. Secretary Steven Mnuchin told the Senate Banking Committee on Tuesday that the process is already underway.

The agency has removed restrictions on NewDay USA and Sun West Mortgage from including VA single-family loans in multi-issuer pools.

A whole business securitization from TGI Friday’s was downgraded by Kroll Bond Rating Agency. Meanwhile, two such deals hit the market.

If the U.S. economy enters a recession, MBS and ABS are expected to perform relatively well, according to S&P. Subprime auto ABS, certain commercial MBS and CLOs are most at risk for downgrades.

Treasury recommends Congress authorize Ginnie Mae to provide “last position” guarantee on MBS backed by conventional and multifamily home loans as well as give it the flexibility to adjust its guarantee fee.

Late this week, the Treasury Department unveiled its long-awaited plan to revamp the mortgage market. There were no huge surprises but Treasury wants “explicit” backing for the agency MBS market.