SIFMA warned that Freddie’s proposal to acquire second liens could pose risks to the to-be-announced, credit-risk transfer and consumer-loan markets. SFA said the proposal, if approved, should be limited.

With an eye toward attracting more mature ESG investors from Europe, Fannie and Freddie updated their Mission Index scoring.

The new requirements under FINRA 4210 will apply to trades in the to-be-announced market as well as other agency MBS positions.

Rocket’s originations and secondary market sales of home equity loans are flourishing without the GSEs. It’s also not yet clear how large of a role the GSEs would have in the market for closed-end second liens.

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.)