The Federal Open Market Committee this week announced lower caps for Treasury runoff and a tweak to its MBS activity.

Profits at Fannie Mae and Freddie Mac weathered a steady decline in mortgage purchases and shrinking mortgage holdings. (Includes data table.)

Freddie Mac is seeking approval to acquire second liens. The Structured Finance Association opposes the proposal, noting that non-agency outlets are providing sufficient liquidity for seconds.

The diversification inherent in MBS may be the ideal tool to combat climate risk in housing finance.

Banks, the largest holders of agency MBS among investor groups, aren’t expected to be big buyers this year. Money managers helped to fill the void left by banks last year, but that might not continue into 2024.

Issuance of GSE Supers MBS remained elevated in the fourth quarter, although down significantly from the previous period. Ginnie remains king of the agency REMIC market. (Includes two data tables.)

The Maxex mortgage platform will now connect originators with non-agency buyers of agency-eligible mortgages for investment properties and second homes.

A look back at prior interest rate cuts by the Federal Reserve suggests that agency MBS outperform competing assets in that environment.

The new Mission Index will be used to determine which single-family MBS can be designated social bonds.

Bank of America issued a resecuritization this week tied to a 2017 multifamily K-deal. It’s the first rated issuance of its kind from BofA since 2016. The new resecuritization received an A- rating.