The latest delay to implementation of margin requirements for agency MBS is tied to changes proposed to Rule 4210 following FINRA’s discussions with staff at the Federal Reserve and the SEC.

A recent white paper from three academics attempts to cast some light on the practice of Ginnie Mae EBOs. But should the end investor be worried?

Don Layton said critics don’t like credit-risk transfers because they make the GSEs stronger and more durable.

Banks and thrifts increased their residential MBS holdings by $77 billion during the third quarter of 2021, continuing to favor Fannie/Freddie pass-through securities. (Includes two data charts.)

Bridge Investment Group, a major player in the multifamily sector, said the proposed changes to the enterprise regulatory capital framework could actually increase the capital requirements for the GSEs.

Most MBS market participants expect banks and foreign investors to pick up the slack as the Fed cuts its purchase of agency securities.

The central bank may reduce its purchase of new agency MBS, but experts say it’s unlikely to allow current holdings to roll off. That reinvestment strategy means the Fed’s post-taper purchases could approach $60 billion in MBS a month.

The Fed will stop being the hog at the MBS trough, one of these days. Ramifications and opportunities for other buyers?

While banks and foreign investors have increased their holdings of agency MBS in recent quarters, the Federal Reserve continued to buy over half of net new issuance during the second quarter. (Includes three data charts.)

Auctions of early buyouts from Ginnie MBS continues apace. One way to enter the market: Buy the mortgage servicing rights instead.