Investors that once focused on lower tranches of non-agency MBS are shifting up in credit, seeing just as strong returns from AAA-rated tranches with fewer risks. Investors in agency MBS are also changing strategies as interest rates rise.

Trade groups widely supported the new law, but at least one association says the proposed implementing regulation still needs work.

Investors have been asking for more data on the social aspects of loans in Ginnie Mae pools, said agency President Alanna McCargo.

MBA urges FHFA to consider securitization when reviewing the Federal Home Loan Bank system; Ambac’s MBS lawsuit against Countrywide goes to trial 12 years later; MISMO seeks comments on template for BWIC activity.

The federal entities appear to have accommodated many of the concerns of small and mid-sized seller/servicers, reducing some requirements and eliminating others.

FINRA and the MSRB plan to cut the reporting time for TRACE-eligible trades from 15 minutes to just one.

Changes to Form FR-2004 help distinguish between the specified pool and to-be-announced positions of primary dealers.

Interest rates have fallen recently but are now going the other way. As for MBS trading and creation, it’s not a pretty picture these days.

Agency single-family MBS issuance fell 7.3% from June to July, including a disappointing slowdown in the flow of purchase-money loans. Issuance of GSE Supers fell sharply as neither Fannie nor Freddie issued any commingled deals. (Includes two data charts.)

The Federal Reserve giveth and taketh away in the agency MBS market. And now that the central bank’s investment activity is significantly curtailed, investors are seeing some opportunities in the sector.