The Federal Reserve remained the largest single investor in single-family MBS, though its portfolio finally began to decline during the second quarter. Ginnie led the agency market gains, while non-agency posted a fourth straight quarterly gain. (Includes two data charts.)

According to the Ginnie Mae president, the “majority” of the agency’s is-suers would already be in compliance with the new capital requirements. But at least one of its counterparties is considering exiting the Ginnie program.

A higher-than-expected inflation reading for August led to volatility in interest rates this week, hurting the value of agency MBS. Still, the CEO of AGNC, a real estate investment trust focused on agency MBS, expects that concerns tied to the Fed will diminish by the end of the year.

One after another, nonbanks are lining up to reduce the size of their master repurchase deals or cut the credit entirely. Message: The mortgage boom is over.

The Federal Reserve’s pandemic-driven asset-buying spree altered the composition of assets and liabilities, a change that impacts balance sheet reduction.

A weak origination market is fueling reduced activity on MBS trades. Still, some view MBS as a safe haven of sorts, especially with the equities market reeling.

For the first time in a long while, Fannie in August finished third in issuance of single-family MBS. Agency purchase volume rose slightly as refinance activity continued to slump. (Includes two data charts.)

Investors that once focused on lower tranches of non-agency MBS are shifting up in credit, seeing just as strong returns from AAA-rated tranches with fewer risks. Investors in agency MBS are also changing strategies as interest rates rise.

Trade groups widely supported the new law, but at least one association says the proposed implementing regulation still needs work.

Investors have been asking for more data on the social aspects of loans in Ginnie Mae pools, said agency President Alanna McCargo.