The majority of expanded-credit MBS this year has been filled with Alt A loans that tend to have higher credit scores and are underwritten with alternative documentation.

Meanwhile, new agency MBS creation remained strong in September at $160.2 billion…

“To foster competition that serves consumers, the new strategic plan and scorecard aim to provide a level playing field for all market participants such that success depends on running a better business rather than special regulatory and statutory advantages,” the FHFA states.

Meanwhile, depository institutions shrank their Ginnie MSR by 1.9% during the third quarter.

In a TV interview, HUD Secretary Ben Carson noted: “We love the non-depository lenders but we want to normalize the market.”

And now for the big question: Where do we go from here?

“Despite the interest rate volatility during the quarter, our hedging strategy and portfolio performance resulted in a slight increase to our book value quarter over quarter,” said company CEO Michael Nierenberg. “In the third quarter 2019, origination volume tripled and servicing volume doubled relative to the same period last year.”

The temporary measure is expected to generate billions of dollars in VA funding fees between Jan. 1, 2022, and Oct. 1, 2027. It would offset new direct spending by $86 million over the five-year period.

A strong fourth-quarter finish could put 2019 in striking distance of the record $249.05 billion of CMBS issuance in 2017.

If banks meet the safe harbor requirements, the FDIC won’t reclaim assets from a non-agency MBS if a bank is subsequently placed in conservatorship or receivership.