Some of the largest bank investors in MBS reduced their holdings of agency MBS during the second quarter.

Jumbo servicing declined during the second quarter at Bank of America, Chase and Wells Fargo.

Purchase-mortgage business is running ahead of the levels seen in the first half of 2025.

Freddie Supers issuance was up 52.7% from the first quarter to $83.03 billion, while Fannie recorded a 0.3% increase.

In the second quarter, all but four of the 50 largest jumbo lenders posted increases in originations.

Banks and thrifts handled servicing on $2.790 trillion of mortgages for other investors at the end of June, down $2.38 billion from March.

Fannie Mae and Freddie Mac issued a combined $59.84 billion of MBS in July.

Closed-end seconds remained the most common type of home equity loans for securitization in the second quarter, accounting for 50.5% of issuance.

A group of 13 publicly traded nonbanks reported a combined $2.20 billion in mortgage-banking income for the second quarter, down 32.3% from the first quarter.

“Affordability deteriorated as mortgage rates moved higher through May and June,” said Varun Krishna, CEO of Rocket Companies.