The outlook for Fed action is largely positive for MBS investors, with interest rate volatility expected to decline. Still, rate cuts will introduce a risk that has been limited for years: prepayments.

A new Urban Institute paper called on policymakers to build on the Financial Stability Oversight Council’s recommendations to address liquidity vulnerabilities among nonbank Ginnie Mae issuers.

Common Securitization Solutions looks to use its data and risk management skills to expand the services it provides the GSEs.

Ginnie issuers say cyber reporting standards are too onerous; SEC fines CLO manager; SEC fines rating services for inadequate recordkeeping; T-Mobile ABS sputters; DoubleLine reduces management fee.

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.