Both the size and the composition of the portfolios of Fannie Mae and Freddie Mac have shifted as the mortgage market slows. (Includes data chart.)

Two prominent non-QM lenders failed in recent months amid volatility in the market. Non-agency aggregators suggest that the issues were lender-specific and the market is improving.

Net interest income in the second quarter was up 28% year over year at Fannie, while investment gains were down 75% at Freddie.

A study by the European Central Bank found evidence that rating services respond to their competitive environments by either inflating ratings or altering the strictness of their rating standards.

The Department of Housing and Urban Development is bolstering efforts to expand and support secondary market access for community development financial institutions through Ginnie Mae.

Various tech developments are helping to improve operations in the MBS market. Digital mortgages, blockchain and loan-level disclosures are areas of particular interest.

With FHA loan performance relatively strong and the spike in interest rates this year, early buyout activity from Ginnie MBS is limited. Overall, removals are slowing thanks to elevated interest rates. (Includes data chart.)

Higher interest rates aren’t cutting into the issuance of auto ABS this year and there are few concerns about loan performance.

The mismatch between falling interest income at the Fed and growing interest expense is projected to result in deferred assets of between $60 billion and $150 billion.

The two largest REITs in terms of holdings of agency MBS noted extreme volatility in the second quarter while also suggesting that market dynamics are set to improve.