The Structured Finance Association says the GSEs should be able to accept multiple credit scores on a single application and disclose that information to MBS investors.

The strategies Fannie Mae and Freddie Mac use to manage their retained mortgage portfolios appeared to converge in the second quarter. (Includes data table.)

A significant amount of wealth is expected to be transferred to younger generations in the coming years, leading to smaller mortgage amounts and a change in MBS characteristics.

Investor demand is expected to remain strong for agency MBS despite some volatility expected for the rest of the year.

Issuance of spec-pool MBS in the second quarter increased at a faster pace at Freddie than at Fannie. Pools of loans for Florida properties continued to be favored over loans from New York and Texas. (Includes data table.)

Adoption of AI in underwriting could significantly reduce refinancing costs for small loans, eroding the prepayment protection low-loan balances have typically provided.

The Trump administration has provided little guidance on how the GSEs will achieve their goal of purchasing $200 billion of agency MBS. Still, actions by Fannie and Freddie have helped competing agency MBS investors get comfortable with activity by the mortgage giants.

Angel Oak Capital Advisors believes that a recent rise in interest rate volatility could help increase returns for MBS.

Testifying before the House Financial Services Committee this week, Federal Reserve Chair Kevin Warsh said any changes to monetary policy — including the Fed’s balance sheet — will be made transparently and communicated in advance to the market.

Investors are scrutinizing risks to MBS posed by climate issues. Analysts believe the anxiety doesn’t align with historical data.