Strong increases in loan sales by Wells Fargo, JPMorgan Chase, Truist and Citizens Bank helped boost the banking industry's share of new GSE business in the second quarter. (Includes two data charts.)
Lenders delivered $149 billion of refinance loans into Fannie and Freddie MBS issued in May, down 29% from April. The GSEs also saw a 4% drop in deliveries of purchase-money mortgages. (Includes two data charts.)
A recent report from the Congressional Research Service suggests that it may be difficult to simultaneously raise the capital requirements for the GSEs and shrink their footprint, and still expect them to attract equity investors.
Veteran analyst Dick Bove says tapering by the Federal Reserve and meddling by the FHFA will eventually force the Biden administration to address housing-finance reform.
Variation margins will reduce counterparty risk in to-be-announced MBS transactions by requiring buyers and sellers to post margins for any change in prices before settlement.
Freddie posted a huge 20% increase in single-family MBS issuance last month, fueled by big gains at its cash window. Fannie volume was up a more subdued 3% from March. (Includes two data charts.)