Fannie Mae and Freddie Mac in a few days are expected to report second-quarter results that likely will top earnings of the prior period when they posted a combined net profit of $6.5 billion, according to an analysis by Inside MBS & ABS.

Three issuers of prime non-agency MBS have bucked industry standards and closed deals where some of the loans weren’t subject to pre-securitization reviews by third-party due diligence firms. The trend could cause problems for MBS investors, Moody’s Investors Service warned this week.

Mortgages from 125 lenders will be included in the MBS, led by Quicken Loans with a 12.8 percent share…

Michael Bright, President Trump’s nominee to lead Ginnie Mae, wants to ensure that the agency is well run and that mistakes that led to the 2008 financial crisis are never repeated during his watch.

Interest-only loans represent a growing share of collateral securitized by commercial MBS conduits over the past few years. Credit rating agencies are concerned because IO loans generally perform worse than amortizing mortgages.

Most of the major product categories had some slippage in the second quarter.

As GSE investor James Fenkner put it: “Yes, the U.S. Treasury will be cashing in again nicely next week.”

A handful of banks account for a large share of the loans in prime non-agency mortgage-backed securities issued since the start of 2017, according to a new ranking and analysis by Inside Nonconforming Markets. Banks were four of the top five originators of securitized prime mortgages between January 2017 and June 2018. More precisely, these banks ranked among the top known sources of collateral for these deals. In fact, the name of the originator was ... [Includes two data charts]

In a potentially significant shift, Wells Fargo has set aside $507.0 million in mortgages for inclusion in a non-agency mortgage-backed security. Wells is the top jumbo lender and some industry analysts suggest that the jumbo MBS market won’t rebound until banks like Wells stop retaining production in portfolio. Wells said loans designated as held-for-sale for a future MBS are nonconforming mortgages that would have otherwise been stored in its portfolio. Although no other details about ...

Annaly Capital Management plans to include a much higher share of non-qualified mortgages in its latest non-agency mortgage-backed security than the first deal issued by the real estate investment trust this year. Non-QMs will account for 45.4 percent of the $383.5 million issuance, according to presale reports by Fitch Ratings and Kroll Bond Rating Agency. Annaly’s first MBS was largely stocked with loans that had seasoned for at least 10 years – well before the QM rule came along ...