A handful of GSE specified-pool categories based on maximum loan amounts saw increased production in the first quarter, as did MBS backed by investor loans. (Includes data table.)

Fitch placed a “deteriorating” outlook on the securitized second-lien market due to rising delinquencies. However, the rating service said that the sector is still performing within its base case expectations.

Some large servicers are using securitizations for MSR financing while mid-size and smaller servicers stick with bilateral agreements.

Ginnie altered its reporting guidelines so issuers wouldn’t have to remove large volumes of delinquent loans from MBS all at once. Goldman Sachs analysts warned that the can has just been kicked down the road.

Policies put in place during the pandemic prevent many small banks and credit unions from selling small-balance loans to the GSEs, which constrains mortgage lending in rural and low-income communities.

With softening home price appreciation, expanded-credit MBS might not see loss severities increase thanks to low LTV ratios at issuance.

Even with strong earnings the GSEs are making little progress on meeting stringent capital levels set during the first Trump administration.

For MBS investors, the biggest complication in the GSEs’ implementation of VantageScore 4.0 is likely loan-level pricing adjustments.

Fannie Mae expanded its portfolio by adding both whole loans and MBS, while Freddie Mac cut whole loans as it added MBS.

The agency will exclude FHA mortgages on trial payment plans when calculating an issuer’s delinquency ratio.