Citing improved conditions for legacy non-agency mortgage-backed securities, the Federal Reserve this week auctioned off $1.33 billion in non-agency MBS acquired from American International Group. Information on the winning bids will be made public in three months but analysts suggest that...

Despite heavy refinance activity, declining house prices and the lure of the government-backed securitization market, banks and thrifts managed to increase their retained first-lien mortgage portfolios in 2010 – including a measurable jump in the fourth quarter... [Includes one chart and one graph]

Originations of non-agency jumbo mortgages increased by 36.4 percent in the fourth quarter of 2010 compared with the previous quarter, according to a new ranking and analysis by Inside Nonconforming Markets. Meanwhile, officials at Redwood Trust have urged banks to ... [includes one graph and one chart].

Once major supporters of alternative mortgages, Fannie Mae and Freddie Mac now proudly tout their preference for plan vanilla mortgages. Michael Williams, Fannie’s president and CEO, said the GSE is setting new standards for credit quality in the mortgage industry with the shift in acquisition activity... [includes one chart]

The House has approved legislation that would end the Home Affordable Modification Program, though the legislation is unlikely to progress beyond the House. The Senate has introduced companion legislation, but is unlikely to pass such a bill... [includes one chart]

The Obama administration’s proposal to reform the government-sponsored enterprises was largely endorsed by participants in the non-agency market. However, a significant resumption in the issuance of non-agency mortgage-backed securities still appears to be years away... [Includes one graph]

Federal regulators are moving toward establishing national servicing standards, which could have a major impact on subprime servicers. An estimated $630.0 billion in subprime mortgages were outstanding at the end of 2010, according to a new ranking and analysis by Inside Nonconforming Markets... [includes one chart]