Nearly all of the loans in Provident’s MBS are for primary residences.

Applications for refis declined while demand for purchase mortgages ticked up last week.

The loss was driven by negative marks on mortgage servicing rights and losses on interest rate swaps tied to hedging.

Mark Fair, an associate vice president and senior portfolio manager at Venerable, a life insurance company, said he’s “very constructive” on the non-QM market.

“Modernizing and providing more clarity on structuring marketing services agreements and affiliated business arrangements and making it easier for lenders to market digitally to consumers would spur greater competition, increase consumer choices and lower settlement costs without compromising core protections,” Bob Broeksmit, president and CEO of the MBA, said in the trade group's white paper on RESPA reforms.

Annaly says it increased its holdings of agency MBS with higher coupons during the third quarter.

Karan Kaul, a senior policy advisor at Ginnie Mae, said Ginnie and others need to analyze the various reform proposals that have been released in recent years.

An expected re-proposal of capital requirements for big banks could lead to banks adding to their holdings of agency MBS.

“Everybody is feeling pretty good right now,” said Joseph Lau, president and chief investment officer of LordCap Green, an investment manager, and chair of FIIN, summing up a poll of attendees at the ABS East conference.

The company measured its economic return at 9.3% in the third quarter...