Most of the increase in banks’ MBS investment was in Ginnie Mae pass-throughs, which grew a modest 1.5% from the first quarter. Holdings of non-agency securities declined. (Includes two data tables.)

Industry observers don’t expect the move to prompt major declines in interest rates this year.

Runoff of agency MBS from the Federal Reserve’s portfolio appears slow but is close to actual Fed projections.

Many of those green loans will still be eligible for purchase by the GSEs. Social bonds appear unaffected.

TPG Mortgage Investment Trust is set to acquire Cherry Hill Mortgage Investment in a $117.5 million deal.

The Structured Finance Association says the GSEs should be able to accept multiple credit scores on a single application and disclose that information to MBS investors.

The strategies Fannie Mae and Freddie Mac use to manage their retained mortgage portfolios appeared to converge in the second quarter. (Includes data table.)

A significant amount of wealth is expected to be transferred to younger generations in the coming years, leading to smaller mortgage amounts and a change in MBS characteristics.

Investor demand is expected to remain strong for agency MBS despite some volatility expected for the rest of the year.

Issuance of spec-pool MBS in the second quarter increased at a faster pace at Freddie than at Fannie. Pools of loans for Florida properties continued to be favored over loans from New York and Texas. (Includes data table.)