REITs and overseas buyers could take up the slack.

Portfolio restructuring by the Federal Reserve accounted for about a third of new Fannie and Freddie Supers issuance in the second quarter, but volume is slowing down. (Includes two data tables.)

Money managers overweight with agency MBS are looking to reduce their exposure, creating new investment opportunities for other segments of investors.

The executive president of the Mexican Association of Retirement Fund Administrators noted that some Mexican investors see U.S. MBS as a riskier investment than U.S. Treasuries.

Deliveries of rate-term refinance loans to the agency MBS market rose sharply in July as a growing share of the market has coupons over 6%. Purchase-loan volume was up 8% at Ginnie, while the GSEs saw a 3% decline. (Includes two data tables.)

Finally, a true bond market rally and lower mortgage rates! Well, don’t bet the bank quite yet.

The Mortgage Bankers Association and the National Reverse Mortgage Lenders Association suggested changes for Ginnie’s planned HMBS 2.0 program.

The move is meant to keep FHA multifamily loans for new construction competitive with those from other programs.

Agency MBS investors are looking forward to the Fed cutting interest rates twice this year. However, they warned that something unexpected could prevent the Fed from cutting rates in September.

The volume of loans removed from Ginnie MBS increased by nearly 20% in the second quarter, driven by borrower loan payoffs. (Includes two data tables.)