Bank of America reported a $16 billion decline in its residential MBS portfolio, while a number of other banks shed more than $1 billion in the second quarter. Chase increased its holdings, but not but as much as the First Republic acquisition might have suggested. (Includes two data charts.)

The New York-based financial firm admitted to providing false pricing information to residential MBS clients between 2009 and 2013. It also agreed to cooperate with investigations into former employees.

If the proposal is implemented, some mortgage originations that have gone into bank portfolios would likely go into MBS instead. The impact on bank investment in MBS and ABS looks to be much more modest.

A pending proposal led by the Federal Reserve could see big banks facing higher capital requirements on their holdings of securities classified as available-for-sale.

The new connections and funding are designed to make the loan trading platform available to more sellers, particularly those that focus on agency business.

A suggestion for limiting interest rate risk at banks; tighter spreads for Fannie’s new CRT; Victory Park Capital launches structured finance unit; and more.

The biggest gain was in agency single-family MBS, as several large bank holding companies boosted their trading portfolios by $1 billion or more during the first quarter.

The Bank Term Funding Program has issued more than $100 billion in outstanding funding tied to agency MBS and Treasury securities held by banks.

Money-market funds were the most aggressive buyers of MBS during the first quarter, and analysts think demand from the sector will last. (Includes three data charts.)

Annaly Capital Management highlighted how environmental, social and governance principles factor into its activities. Leaders at the REIT said ESG analysis can help Annaly deliver “superior” returns.