The Federal Reserve’s relentless acquisition of agency MBS has been the biggest factor in the changing complexion of the MBS investor picture, far outstripping the tortoise-like pace at which the market has expanded this year. The Fed increased its agency MBS holdings by 12.8 percent during the second quarter of 2013, according to a new Inside MBS & ABS profile of investor classes in the mortgage securities market. The central bank added $137.2 billion to its agency MBS holdings during the quarter, and its gross acquisitions totaled $466.6 billion since the beginning of the year. That represented...[Includes two data charts]

The number of loans repurchased by lenders from Fannie Mae and Freddie Mac fell sharply during the second quarter from the record level set during the first three months of 2013, according to a new Inside Mortgage Finance analysis of repurchase disclosures by the two government-sponsored enterprises. In filings with the Securities and Exchange Commission, the two GSEs reported a total of $2.81 billion of mortgage repurchases during the second quarter, down 78.7 percent from the first quarter of 2013. GSE buybacks hit a record $13.21 billion in the first three months of 2013 as Fannie and Bank of America resolved their dispute over legacy loans sold to the GSE by Countrywide Financial. The settlement also helped wipe out...[Includes one data chart]

The House Republic legislation to eliminate the government-sponsored enterprises and replace them with private capital has no chance of passing in the Senate, according to Sen. Bob Corker, R-TN. He said the bipartisan approach he crafted with Sen. Mark Warner, D-VA, has a better chance of passing through Congress and maintaining wide availability of 30-year fixed-rate mortgages. “Going to a completely privatized system today to me is not something that has one chance of passing,” Corker said late last week in a conversation with Warner, hosted by Zillow. Corker was referring to H.R. 2767, the Protecting American Taxpayers and Homeowners Act, which the House Financial Services Committee approved in July. The bill isn’t on the House’s fall legislative agenda. “What Mark and I have done is...

Here's an odd turn of events: Freddie Mac might bail out Uncle Sam. Meanwhile, the mortgage insurance industry continues to mend.

Fannie Mae and Freddie Mac will determine new risk ratios for the mortgage insurance industry, not the Federal Housing Finance Agency.

If you're looking for another factor in the red hot MSR market, consider this: housing receivables keep shrinking.

Not only is Citigroup selling $61 billion in legacy MSRs, but the megabank is trying to clear out its legacy buyback exposure.

Fannie Mae seller/servicers also can dodge the maintenance fee if they have $25 million in Fannie servicing or paid $5,000 in technology fees.

The talk has prompted speculation that the FHFA could lower the conforming loan limit to $400,000 or, as conservator of the GSEs, direct them to reduce high-cost loan limits.

PHH saw its share price spike late last week after rumors spread that it may sell a large block of mortgage servicing rights.