On the same day that the Federal Reserve bought its first $1 billion in agency multifamily MBS, it purchased more than $41 billion in agency single-family MBS.

The coronavirus economic assistance package is signed, sealed and delivered but concerns remain over the ability of nonbanks to pay MBS holders in the event delinquencies spike over the short term.

A resumption in quantitative easing — at a pace that dwarfs asset purchases during the financial crisis — is just one of several Fed actions to keep credit markets functioning through the coronavirus crisis.

The FHFA’s move to allow Fannie Mae and Freddie Mac to buy MBS has a narrow and specific goal.

To make sure Fannie and Freddie get the most value out of their CRT deals, the FHFA has directed them to wind down front-end transactions.

Federal forbearance on government backed mortgages is a panacea to deal with the economic fall-out caused by the novel coronavirus. But eventually there will be implications in the primary and secondary markets.

DoubleLine is boosting investments in securitized products. The firm recently raised close to $1 billion for a fund aimed at MBS and ABS.

While it may seem the Fed’s actions can directly affect mortgage rates, Wells Fargo analysts said any such effect may get counterbalanced.

The trading desk will purchase both 30-year and 15-year fixed-rate agency MBS. All trades will be conducted through FedTrade.

Bank of New York Mellon is no longer an approved MBS document custodian for Ginnie Mae.