Slumping purchase-mortgage business in the agency MBS market was a big factor in the 6% downturn in total MBS-ABS-CMBS issuance in the first quarter of 2021. Agency business rebounded in March, however.
The first quarter of 2021 still ranks second in total agency MBS production despite a sharp decline in purchase-mortgage volume. Several top sellers boosted agency volume in early 2021. (Includes two data charts.)
Slumping purchase-mortgage business drove Fannie/Freddie MBS volume lower in the first quarter, but securitization of refinance loans remained robust. (Includes two data charts.)
When Fannie/Freddie business volume trends lower, the risk profile generally skews higher. And that’s exactly what happened in the first quarter of 2021. (Includes two data charts.)
There are signs that the “adverse market refinance fee” is pushing some business away from Fannie and Freddie toward government mortgage insurance programs. (Includes two data charts.)