The share of risk the government-sponsored enterprises is offering to investors is also on the rise.

With Freddie finally increasing its STACR issuance in the first quarter, the GSEs’ slump in CRT activity could be abating. Older deals continue to be retired in a steady stream of tender offers by the enterprises. (Includes data table.)

In a ruling last week, the Third Circuit didn’t seem to agree with a district court that Commerzbank is contractually barred from bringing claims against trusts for agreements with no-action clauses.

Changes in loan characteristics for new acquisitions and new capital requirements combined to reduce the “profitability gap” for GSE business in 2022.

Lenders continue to make bulk purchases to offset runoff in their portfolios and make up for anemic originations. However, demand for MSRs could be near a peak, according to industry analysts.

Fannie and Freddie are facing portfolio losses due to the mortgage market.

FICO CEO Will Lansing addressed the criticism over the price increases, saying the firm was “catching up from 30 years of frozen pricing.”

PennyMac Financial Services CEO David Spector said he’s “very supportive of the GSEs getting into second-lien origination.”

Mortgage deliveries to the mortgage-backed securities platforms of Fannie Mae and Freddie Mac rose in April, but credit trends suggest these were seasonal increases rather than a start of a new trend. (Includes two data tables.)

Even though Fannie Mae and Freddie Mac maintained healthy profits in a tough market in the first quarter, their capital shortfalls under the ERCF remained absurdly high. (Includes data table.)