The “GSE patch” news is a week old now, but the ramifications are still unclear. One big wild card: the election of a Democrat president.

HUD is cracking down on the securitization of high LTV cash-out refis. Coming changes will affect FHA and VA lenders. Meanwhile, the FHFA may be ready to act as well. A big deal or much ado about nothing?

June was an exceedingly strong month for MBS activity with the average trading volume reaching $267 billion, according to SIFMA. But next week all eyes will be on the FOMC: Will the central bank hike or not?

With rates continuing to decline, hedging is paramount these days. Meanwhile, certain banks and thrifts are reporting lower MBS holdings.

MBS creation took off like a rocket in the second quarter and the way lenders are feeling today the good times should last for a few more months at least. But there is a downside: prepayment speeds.

Bullish signs abound for non-QM securitizations. Top-ranked lenders Angel and Citadel Servicing Corp. are coming off record originations for 2Q19. Angel Oak believes the market is underestimated.

The Wall Street trade group cautioned that releasing the GSEs from conservatorship without an explicit government guarantee will scare investors and reduce the liquidity in the TBA market.

With interest rates falling, refis have spiked, creating a wave of principal pre-payments that the Fed has used to cut its MBS holdings.

Declining interest rates helped fuel a securitization boom at Fannie and Freddie in the second quarter. However, falling rates will force writedowns tied to derivatives.

Issuance of agency MBS during April-June rose 43% from the first quarter of the year, with gains posted across the board. Combined issuance by Fan-nie Mae, Freddie Mac and Ginnie Mae hit $330.65 billion.