Demand for refis declined last week while applications for purchase mortgages held steady.

Residential MBS production was up 11.9% from the second quarter, hitting $341.43 billion, a two-year high.

Credit unions and small community banks opposed the idea of incentive membership programs at the Federal Home Loan Banks.

Elevated home prices are limiting home sales.

Issuance of single-family agency MBS increased by 13.1% from the second quarter, hitting its highest level in two years.

Even with elevated levels of delinquencies, MBS investors are protected due to credit enhancement and low loan-to-value ratios.

Fitch Ratings upgraded its servicer ratings of Planet Home Lending, citing a strong recapture rate, among other attributes.

An estimated 64.2% of newly-originated home loans were securitized in the second quarter, down from 67.2% in the first quarter.

The MBS is stocked with scratch-and-dent loans, early buyouts from Ginnie MBS and non-QMs.

Freedom Mortgage is set to issue a $255.0 million transaction tied to financing acquisitions of mortgage servicing rights for loans associated with Fannie Mae.