Most of the increase in banks’ MBS investment was in Ginnie Mae pass-throughs, which grew a modest 1.5% from the first quarter. Holdings of non-agency securities declined. (Includes two data tables.)

Industry observers don’t expect the move to prompt major declines in interest rates this year.

Runoff of agency MBS from the Federal Reserve’s portfolio appears slow but is close to actual Fed projections.

Many of those green loans will still be eligible for purchase by the GSEs. Social bonds appear unaffected.

Volatility from the war with Iran prompted a slowdown in CRT issuance and wider spreads on the deals Fannie Mae and Freddie Mac issued during the second quarter of 2026. (Includes data table.)

The Structured Finance Association says the GSEs should be able to accept multiple credit scores on a single application and disclose that information to MBS investors.

The strategies Fannie Mae and Freddie Mac use to manage their retained mortgage portfolios appeared to converge in the second quarter. (Includes data table.)

The two government-sponsored enterprises reported robust earnings for the second quarter of 2026, driven by solid growth in net interest income.

The Trump administration has provided little guidance on how the GSEs will achieve their goal of purchasing $200 billion of agency MBS. Still, actions by Fannie and Freddie have helped competing agency MBS investors get comfortable with activity by the mortgage giants.

Testifying before the House Financial Services Committee this week, Federal Reserve Chair Kevin Warsh said any changes to monetary policy — including the Fed’s balance sheet — will be made transparently and communicated in advance to the market.