Prepayment rates are expected to be higher than in previous refinance cycles because lenders have bumped up spending on technology to improve recapture rates and loan originators are eagerly anticipating increasing their volume.

Servicers face more onerous advance requirements for delinquent loans in Ginnie MBS compared with loans in GSE MBS.

The FHA plans to continue to assess its life-of-loan mortgage insurance premium but will consider making changes to the policy in the future.

Keefe, Bruyette & Woods analyst Bose George said, "Given the modest scale of the announced pilot program, there should be no meaningful impact on the mortgage market."

Freddie saw the bigger monthly increase in MBS output, up 9.4% from April. Business was up 6.3% at Fannie.

The Federal Reserve reported $445.78 billion of non-agency MBS outstanding at the end of March, up 2.6% from December.

Persistently high interest rates have bitten into the GSEs' attempts to preserve existing affordable housing...

Most of the increase in Freddie buybacks in the first quarter of this year came from loans that were securitized in 2023, which totaled $219.1 million and represented 65.8% of Freddie repurchases in early 2024.

An analysis by Inside Mortgage Finance found that only 1.5% of purchase mortgages in agency mortgage-backed securities issued in 2023 carried a combined loan-to-value ratio greater than 97%.

FHFA states the GSEs must integrate the management of climate-related risks into their existing governance frameworks.