Bank holding company trading accounts showed a 21% surge in residential MBS during the first quarter, mostly involving agency MBS holdings among the largest institutions. (Includes two data tables.)

In the wake of Trump’s social media posts pledging to retain the implicit guarantee for GSE MBS, industry analysts see signs for support for the administration’s plans for GSE reform.

Two Harbors booked a nearly $200 million contingency liability after a court ruled that the REIT improperly ended a contract with its one-time external manager.

President Trump attempted to mollify concerns about the post-conservatorship guarantee of GSE MBS, but questions remain about the regulatory treatment of those securities and the TBA market.

The Fed is allowing its holdings of agency MBS to run off and many other big players in the MBS market appear to be close to tapped out.

Banks reported that just over half of their long-term investment in residential MBS was classified as available-for-sale. Overall holdings were up, particularly Ginnie MBS. (Includes two data tables.)

Participants in the agency MBS market said if the Trump administration wants to release the GSEs from conservatorship, it should be done in a way that preserves many of the functions currently provided by Fannie Mae and Freddie Mac.

The Federal Reserve is allowing its MBS holdings to run off in a predictable manner; Ginnie provides more details on change to buydown policy; Cerberus affiliate issues securitization of closed-end second liens.

Portfolio holdings at the government-sponsored enterprises declined across the board during the first quarter of 2025. On an annual basis, Fannie Mae increased its holdings of MBS while Freddie Mac’s mortgage holdings increased. (Includes data table.)

It’s not clear how the Federal Housing Finance Agency’s decision to cut the DEI and ESG programs at the GSEs will impact MBS issuance.