Much like in other parts of the MBS and ABS markets, spreads are widening on CRT issuance from the GSEs, prompting some changes in activity at Fannie Mae and Freddie Mac.

Angel Oak Director Robert McDonough noted the difficulties in pricing climate risks into securities. However, once investors can more actively analyze risks, residential MBS loan pools are likely to change, he said.

Fannie Mae and Freddie Mac plan to resume bulk acquisitions of seasoned mortgages from lenders. However, the purchases will be focused on smaller lenders.

Industry groups argue that assessing fees on commingled collateral could undermine market confidence in the UMBS.

Modest increases in short-term and medium-term debt may indicate Fannie and Freddie are ready to return to the capital markets.

The first Black woman to serve as head of the Federal Housing Finance Agency squeaked through the confirmation with just one Republican vote, Sen. Mike Rounds of South Dakota.

Ginnie and FHFA are working together to set capital and liquidity requirements for nonbanks. Separately, Ginnie is working to allow for changes at the loan level and FHFA is considering reforms involving the Federal Home Loan Banks.

Small lenders may be able to avoid some of the margin requirements by diversifying the pool of broker-dealers they use for hedging.

Fannie Mae’s first-quarter earnings declined due to higher loan loss provisions, while Freddie Mac posted higher profits on the back of credit-related income. (Includes data chart.)

Volume for both purchase mortgages and refis was down at the mortgage giant, but profits increased on the back of higher home prices.