While the Fed was shrinking its agency MBS portfolio by $54.5 billion during the third quarter, commercial banks increased theirs by $56.2 billion and money managers added $23.8 billion. (Includes two data charts.)

In gubernatorial election years, banks cut the dollar volume of jumbo loans they originate or purchase by 13% to 25%, a Fed study shows.

The average daily trading volume in agency MBS reached a yearly low in August as rates troughed. A rebound could lay ahead. Or maybe not.

Year-to-date CLO issuance lagged behind the pace set in 2018 because of a slowdown in refinance transactions. Octagon Investment Partners was the most active sponsor at midyear.

New issuance of credit-risk debt notes by the GSEs fell 25.5% sequentially in the second quarter, but surging MBS production in recent months will likely spur increased CRT activity in the second half of the year.

Mortgage-investing REITs continue to tap the equities market. And it’s occurring at an odd time: The Dow Jones Industrial Average is gyrating like a drunken puppet.

HUD is cracking down on the securitization of high LTV cash-out refis. Coming changes will affect FHA and VA lenders. Meanwhile, the FHFA may be ready to act as well. A big deal or much ado about nothing?

June was an exceedingly strong month for MBS activity with the average trading volume reaching $267 billion, according to SIFMA. But next week all eyes will be on the FOMC: Will the central bank hike or not?

With rates continuing to decline, hedging is paramount these days. Meanwhile, certain banks and thrifts are reporting lower MBS holdings.

MBS creation took off like a rocket in the second quarter and the way lenders are feeling today the good times should last for a few more months at least. But there is a downside: prepayment speeds.