January was a good month for MBS trades as transaction volume picked up substantially. Of course, there’s always been a seasonality to the early months of the year. The biggest question mark: rising rates.
Would social bonds backed by single-family loans rather than multifamily loans still comport with the GSEs’ mission without impacting safety and soundness? FHFA issued a request for input on the matter.
While the GSEs are under mandates to shrink their retained portfolios, Freddie’s holdings increased in the final three months of 2022. (Includes data chart.)
The MBS and ABS markets would experience significant volatility if the federal government doesn’t increase its debt limit. Uncertainty on the outcome is already prompting conservative moves among major investors.
FHA and VA are collaborating with Ginnie Mae on new low- to moderate-income disclosures for MBS pools to help investors meet environmental, social and governance mandates.
Ginnie again ranked as the top agency MBS issuer in January. While production fell for the 10th straight month, several lenders boosted their monthly sales. (Includes two data charts.)