After a brief rebound in the first quarter, issuance of non-agency MBS declined in the most recent three-month period despite a tiny increase in prime deals.

Ginnie Mae MBS issuance finally caught up to sharp declines in primary-market originations, while ECM securitization was buoyed by more-seasoned loans.

The biggest gain was in agency single-family MBS, as several large bank holding companies boosted their trading portfolios by $1 billion or more during the first quarter.

Money-market funds were the most aggressive buyers of MBS during the first quarter, and analysts think demand from the sector will last. (Includes three data charts.)

Data show that, in the wake of natural disasters, lenders are more likely to approve, originate and sell mortgages to the government-sponsored enterprises. This raises issues of moral hazard and adverse selection, according to economists.

After a three-month hiatus, Fannie rebounded with $1.44 billion in CAS deals, while Freddie’s STACR issuance totaled $611.0 million. (Includes data chart.)

Removals from Ginnie MBS were few and far between in the first quarter of 2023 as elevated interest rates limited loan payoffs and other withdrawal activity. (Includes data chart.)

Fannie and Freddie captured a smaller share of the conventional-conforming market last year, and non-agency issuance dropped sharply in the second half. (Includes data chart.)

No one likes to be asked to repurchase a mortgage that’s already been securitized. But are the GSEs playing too tough on buyback requests on performing loans? The issue has reached the FHFA.

Monthly business volume was up in March, and a handful of sellers grew their agency single-family production in an otherwise calamitous start to the new year. (Includes two data charts.)