The calculus is straightforward: With that much capital tied up in equity, it’s difficult to see how the GSEs could generate adequate returns to attract investors.
Moreover, the "back to the office" quandary became even more pertinent Monday morning, given the positive news surrounding the Pfizer coronavirus vaccine.
The result was that nonbanks at the end of September accounted for 49.1% of the top-50 market, a measurement that includes a substantial volume of subservicing.
Year-to-date issuance climbed to $2.468 trillion at the end of October and should top $3 trillion based on the current pace. As of this writing, there appears to be plenty of gas still left in the tank.