Economists note that the pricing of mortgage credit risk depends not only on the quality of the underlying mortgages but also on who ultimately bears that risk.

The automated AI trade included a $3 million to-be-announced deal that went to a competitive auction across all dealers, and two $500,000 trades that were routed to dealers selected by Pike Creek Mortgage.

GSE MBS investors were frustrated with limited communication from the Trump administration even before FHFA Director Bill Pulte was named acting director of national intelligence this week. The appointment prompted more speculation about the future of the GSEs.

Although President Trump directed the GSEs to purchase an additional $200 billion in agency MBS, they do not appear to be on track to accomplish that by year end.

The voluntary scope aims to standardize practices among due diligence reviewers and also prevent a “race to the bottom.”

Fannie saw a slightly bigger increase in Supers issuance than Freddie did in the first quarter. Ginnie Platinum issuance was down, but the agency led the way in CMO production. (Includes two data tables.)

A Federal Reserve economist estimates that a one-percentage-point steepening of the yield curve reduces the spread between mortgages and the 10-year Treasury yield by 40 basis points.

MBS investors are likely to charge a pay-up for securities backed by mortgages underwritten with VantageScore — at least until they’re confident prepayment speeds won’t accelerate.

New Fed Chair Kevin Warsh has long criticized the size of the Fed’s balance sheet, in particular, its massive holdings of agency MBS.

Rocket Mortgage was the top seller-issuer in April thanks to a 24% jump in monthly volume, while UWM slipped to second place. Newrez, Chase and Onity all posted big gains from March. (Includes two data tables.)