Record-low mortgage interest rates powered a surge in refinance activity in agency mortgage-backed securities platforms during the second quarter of 2020, according to a new Inside Mortgage Trends analysis.

DBRS Morningstar edged out Kroll Bond Rating Agency as the top firm in rating non-agency MBS in the first three months of the year.

“CRT secondary markets have remained open throughout this crisis,” Freddie Mac's Mike Reynolds told Inside Mortgage Finance. “They were dramatically impacted by the COVID liquidity technical, as all markets were, but I think its important for your readers to know that trading still occurred."

Refinance activity continued to drive Fannie/Freddie MBS issuance, but purchase-mortgage activity has still not caught fire...

Although the outlook for mortgage-investing REITs has improved since the Fed began buying agency MBS in March, it has not necessarily been evident in their dividends.

Ginnie Mae said it is concerned that issuers could abuse buyouts and "undermine the integrity of the MBS program."

According to figures compiled by Inside Mortgage Finance, consumers owe roughly $11.168 trillion on their home mortgages, which (based on the MBA measurement) means $947.1 billion in residential debt is at risk.

The revival included first-time EC MBS issuers as well...

Timing is everything. The majority of the loans, 63.0%, went into forbearance status in April and many of these borrowers may have already made their May payment.

The supply of single-family MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae grew another 1.4% in the first quarter, hitting $7.134 trillion.