REITs, which have become key investors in MBS and MSRs, may get another crack at FHLB membership if the Trump administration gets its way. The golden chalice: discount advances available via the borrowing window.
Bulk mortgage servicing sales have been slow in the third quarter, but that doesn’t mean bidders have been hibernating. If rates rise just a little bit and stay there, auctions of MSRs could boom.
Might REITs regain access to the FHLB system after all? It’s hard to predict but Redwood Trust and others remain hopeful thanks to the recent Treasury blueprint on GSE reform.