A COVID-19 infection in the Dallas office of document custodian BNY Mellon is causing MBS transactions to backup.

In his semiannual report to Congress on Tuesday, Fed Chair Jerome Powell described the MBS market as "vital to the flow of credit in the economy."

Ginnie MBS issuance caught up with strong primary market originations of FHA and VA loans, while Fannie and Freddie held steady in the conventional-conforming sector. (Includes data chart.)

The two real estate investment trusts saw red ink in the first quarter as they were forced to sell assets when prices plummeted. MFA raised capital this week while AGMIT is considering its options.

Instead of larger, multi-issuer uniform MBS pools, FHFA wants seller/servicers to closely monitor the prepayment speeds of their broker/correspondent channels to ensure closer alignment of Fannie/Freddie pools.

There’s a growing fear that Ginnie Mae buyouts may soon spike as nonbanks join the “party” to protect themselves.

To ensure the uniform MBS is a “continued success,” the FHFA has asked Fannie and Freddie to be watchful of “key patterns and measures.”

The MBS liquidity crisis is over. Was it ever serious? We may never know and you can thank the Federal Reserve.

Sellers delivered a record $253.3 billion of single-family loans into agency MBS during May thanks to a continuing surge in refi business. Strikingly, several of the top seller-issuers saw significant declines in monthly volume. (Includes two data charts.)

With Ginnie Mae forbearance requests now at 13% of outstandings, FHA has introduced a “temporary” policy to cover loans in progress.