Billions of dollars in delinquent FHA/VA mortgages are still available for purchase in the whole-loan market if you have the knack for rehab-and-release. But for how long?

In case you haven’t noticed, MBS prices are sagging a bit these days, courtesy of higher interest rates. Trading volume is lower, but not exceedingly. What’s ahead? Mostly fog.

The aching question: How far and how fast will the FOMC go in allowing its portfolio of agency securities to run off?

The performance of MBS and ABS isn’t expected to be directly impacted by the fallout of Russia’s invasion of Ukraine in the near term; prepayment rates on agency MBS declined in February.

Fannie, Freddie and Ginnie issued a combined $187 billion of single-family MBS in February, a steep 21.5% decline from January. It was the lowest monthly issuance since March 2020. (Includes two data charts.)

Nonbank boosters continue to fear Ginnie Mae’s final capital rule may not accurately reflect the intrinsic value of MSRs. Others fear it could be too soft.

Fed Governor Christopher Waller says asset sales are “a conversation for another day.”

The Federal Housing Finance Agency plans to implement tiered financial requirements for nonbank servicers and set harsher treatment for Ginnie servicing than what’s currently required for GSE seller/servicers.

Overall securitization rates declined in 2021 as the historic wave of GSE and government business began giving way to increased non-agency lending. (Includes data chart.)

Geopolitical events halfway around the world are affecting interest rate moves in the U.S. It’s possible that mortgage rates could move lower in the immediate weeks ahead. Otherwise, the crystal ball looks cloudy.