The biggest growth was in agency pass-throughs, while bank trading accounts saw a small decline in agency CMOs. (Includes two data tables.)

Smaller contract sizes on home equity investments have made forward-flow agreements an attractive option for investors.

Performance in the category varies by borrower type.

FCI Lender Services is seeing success subservicing securitizations of residential transition loans and other non-agency MBS.

The structure helps issuers extend prefunding and investment periods beyond the 90-day limitation that applies to traditional real estate mortgage investment conduits.

The practice can be used to help boost transparency and accelerate settlements, according to industry experts.

With the Fed widely expected to reduce the federal funds rate next week, demand for agency MBS is rising. Banks are also projected to add to their holdings, though their buying might be somewhat delayed.

Upcoming changes to federal student loan payment options, combined with the resumption of payments and reporting on outstanding loans, will impact ABS, according to analysts at Morningstar DBRS.

The tool allows for more natural questions about MBS performance rather than requiring complicated coding.

Non-agency MBS master servicing volume has steadily grown at Newrez since Rithm Capital launched the effort in 2023.