A resumption in quantitative easing — at a pace that dwarfs asset purchases during the financial crisis — is just one of several Fed actions to keep credit markets functioning through the coronavirus crisis.

The FHFA’s move to allow Fannie Mae and Freddie Mac to buy MBS has a narrow and specific goal.

To make sure Fannie and Freddie get the most value out of their CRT deals, the FHFA has directed them to wind down front-end transactions.

Federal forbearance on government backed mortgages is a panacea to deal with the economic fall-out caused by the novel coronavirus. But eventually there will be implications in the primary and secondary markets.

DoubleLine is boosting investments in securitized products. The firm recently raised close to $1 billion for a fund aimed at MBS and ABS.

While it may seem the Fed’s actions can directly affect mortgage rates, Wells Fargo analysts said any such effect may get counterbalanced.

The trading desk will purchase both 30-year and 15-year fixed-rate agency MBS. All trades will be conducted through FedTrade.

Bank of New York Mellon is no longer an approved MBS document custodian for Ginnie Mae.

Thanks to the spread of the coronavirus, markets became unglued this week as stock prices plummeted. Meanwhile, Treasury yields fell while mortgage rates actually increased. Confused? Welcome to the club.

Industry-wide holdings of residential MBS were steady in the fourth quarter, but several REITs shifted their focus to non-agency MBS and other investments. (Includes data chart.)