A recent paper co-authored by Federal Reserve Governor Stephan Miran identifies several policy changes that would allow the Fed’s SOMA to be reduced by up to $2.13 trillion.

S&P was the top ABS rating service in the fourth quarter and finished narrowly behind Fitch for all of 2025. Kroll held the top spot in MBS ratings for the year despite a strong challenge from Fitch. (Includes two data tables.)

Market participants say the surge in GSE purchases is part of the Trump administration’s effort to reduce mortgage rates and spreads.

The revised proposals would reduce capital requirements for banks, both for MBS holdings and whole loans in portfolio. The change would provide incentives for banks to retain more originations in portfolio.

Some 68.0% of mortgages originated in 2025 were sold into MBS. Securitization rates were stable across most products, except for expanded-credit mortgages, where the securitization rate increased sharply. (Includes data table.)

One of the GSEs has quietly issued an MBS comprised of loans underwritten using VantageScore 4.0.

Since the Iran war started, interest rates have returned to where they were when President Trump directed the GSEs to purchase $200 billion in MBS and most analysts say GSE reform is now off the table.

Since the U.S. initiated strikes on Iran, mortgage rates and MBS spreads have given up all the ground they gained from the Trump administration’s directive for the GSEs to purchase $200 billion in agency MBS.

The potential rule change would allow banks to redesignate MBS holdings from held-to-maturity to available-for-sale.

Secondary-market sales of agency loans followed seasonal patterns last month. Although purchase-mortgage volume saw the biggest decline, the sector still accounted for 55.8% of agency issuance last month. (Includes two data tables.)