If the proposal is implemented, some mortgage originations that have gone into bank portfolios would likely go into MBS instead. The impact on bank investment in MBS and ABS looks to be much more modest.

Margin requirements for the to-be-announced market received another approval from the SEC this week. However, a legal challenge could further delay implementation.

New business and MBS issuance jumped in the second quarter. However, those upticks didn’t account for the spike in profitability at Fannie Mae and Freddie Mac. (Includes data chart.)

Real estate investment trusts are optimistic about the agency MBS market even with anticipated short-term volatility amid turmoil in the banking industry.

According to some critics, the Federal Reserve’s mark-to-market losses on its securities holdings is approaching $1.0 trillion. One option would be to sell off agency MBS, even at a loss.

New capital standards proposed for larger banks; CrossCountry Mortgage, Hildene Capital Management join hands on non-agency MBS; LIBOR update; Angelo Gordon boost emphasis on MBS and ABS.

Despite early fears that the MBS portfolios of the now-defunct Silicon Valley Bank and Signature Bank would be a hard sell, the market has responded favorably to sales of the securities.

MBS trading increased in June. That’s the good news. But for trading to really take off, the Fed needs to cut rates, an unlikely prospect until next year.

The Community Home Lenders of America is pushing for Congress to create a cash window for deliveries to Ginnie Mae. Former Ginnie President Ted Tozer noted the agency’s charter doesn’t allow it to operate a cash window.

Is the mortgage REIT sector in for a turnaround? Maybe so, but some companies will be paying more money to preferred shareholders who bought variable-rate debt that reprices in 2024.