Both these banking giants rely on a mix of retail and correspondent lending to source production, oftentimes acquiring already-funded loans from nonbanks they’re providing warehouse credit to.

Boom times: Presale reports for three expanded-credit MBS were published on Monday. Meanwhile, the second-largest post-crisis deal is in the works and JPMorgan Chase is set to issue another non-QM MBS.

Freddie Mac has long used a variety of tools to maintain a 40% share of GSE business, including discounted MBS guarantee fees and buying more of its own issuance. But one of the primary purposes of the uniform MBS program was to put the two GSEs on a more level playing field.

The $975.07 million deal will be the second largest post-crisis expanded-credit MBS, topped only by a $1.22 billion deal from WAM last year

The robust second quarter brought year-to-date agency MBS issuance to $562.02 billion, just 1.3% below the level reached in the first six months of last year.

Residential loan sales by Wells Fargo tumbled 23% while U.S. Bank suffered a 38% sequential decline…

Mortgages eligible for sale to the GSEs will account for 13.1% of the $353.4 million deal, which is more than double the share of GSE-eligible mortgages in the previous expanded-credit MBS from Redwood.

Some of the top expanded-credit MBS issuers – including Invictus Capital Partners, Angel Oak Companies, Lone Star Funds and New Residential Investment – issued one security each in the second quarter after bringing two deals each during 1Q19…

It was the heaviest quarterly issuance volume since the July-September cycle in 2017.