The Federal Open Market Committee will begin letting agency MBS run off on June 1, but has no plans to actually sell securities.

The market decline, in response to the end of QE, has been severe, but much more orderly than in 2013.

The Fed revealed this week that any sales from its agency MBS portfolio will be telegraphed well in advance. Still, rates continue to rise.

The reputation of being a safe, liquid asset adds about 47 basis points to the “convenience premium” of agency MBS over investment grade bonds, according to the National Bureau of Economic Research.

Failure to submit a timely and specific repurchase demand involving pre-2008 non-agency MBS doomed a U.S. Bank lawsuit.

Rising interest rates will likely bolster investor interest in floating-rate mortgage securities such as agency CMOs and non-agency products. The Fed expects to begin unwinding its massive agency MBS portfolio “at a coming meeting.” (Includes three data charts.)

Mortgage REITs reported declines in their holdings of agency MBS during 2021, but diverse mortgage-related investments continued to grow. (Includes data chart.)

Ginnie Mae is looking for ways in which smaller and less well-capitalized entities can access its securitization platform.

The Federal Reserve will stand back a bit from the agency MBS market in 2022, but U.S. banks may be able to step up in a declining market. (Includes two data charts.)

Ginnie Mae has added a “green status” field to its multifamily MBS disclosures, its first environmental, social and governance disclosure in the multifamily space.