Some of the largest bank investors in MBS reduced their holdings of agency MBS during the second quarter.

Freddie Supers issuance was up 52.7% from the first quarter to $83.03 billion, while Fannie recorded a 0.3% increase.

The nonconforming sector posted a 23.5% fain from the first quarter.

Most of the increase in banks’ MBS investment was in Ginnie Mae pass-throughs, which grew a modest 1.5% from the first quarter. Holdings of non-agency securities declined. (Includes two data tables.)

Banks and thrifts handled servicing on $2.790 trillion of mortgages for other investors at the end of June, down $2.38 billion from March.

The conventional-conforming sector lagged in an otherwise upbeat mortgage market. (Includes two data files.)

The banking industry continued to pare its servicing-for-others. But MSR values held steady on a quarterly basis at the end of June. (Includes data table.)

Loan balances up to $300,000 made up the largest cohort of spec-pool issuance, accounting for 9.0% of the transactions in the second quarter.

Mortgage originations reached $570.00 billion, increasing 8.6% during the second quarter of 2026.

The two government-sponsored enterprises reported robust earnings for the second quarter of 2026, driven by solid growth in net interest income.