FHLB advances reached $806.9 billion at March 31, up 25% sequentially...

Jim Parrott: “It seems to me, it would be extremely helpful for them to add non-agency lending as acceptable collateral under these TALF programs, whether at the MBS level or at the loan level."

Bank and thrift holdings of Ginnie Mae MBS rose 5.0% in the first quarter and investment in agency CMOs increased 3.4% from the end of 2019.

Next stop: The Fannie/Freddie re-IPOs?

The FHFA's optimism is based on quarterly income, financial, and balance sheet statements that Fannie and Freddie receive from 346 MBS servicers...

FHFA Director Mark Calabria: “Homeowners who are in COVID-19 forbearance but continue to make their mortgage payment will not be penalized. Today’s action allows homeowners to access record low mortgage rates and keeps the mortgage market functioning as efficiently as possible.”

According to figures compiled by Black Knight, 4.7 million homeowners are in forbearance plans...

Fannie Mae: “The financial advisor will work closely with the company and the FHFA to consider business and capital structures, market impacts and timing, and available capital raising alternatives, among other items.”

KBW believes the Freddie announcement could improve valuations for mortgage servicing rights “as the market reduces its expectations for potential servicing advance costs.”