Money market managers and insurance companies increased their holdings of single-family MBS during the second quarter.

Despite the 2Q25 increase, repurchases for the first half of 2025 were down 33.9% from the same period last year.

Most of the repurchase activity in the second quarter involved loans sold to the GSEs in 2024, which is shaping up to be a pristine vintage. (Includes three data tables.)

A surge in originations helped boost mortgage-banking income in the second quarter, while MSR marks dampened servicing income. (Includes data tables.)

Non-agency MBS was the fastest-growing niche in residential securities during the second quarter as outstanding volume reached its highest level since 2017. (Includes two data tables.)

Kroll Bond Rating Agency is facing increased competition in assessing non-agency mortgage-backed securities.

Fitch, S&P and Moody’s continued to dominate the ABS market’s key sectors: vehicle and business finance. The residential MBS business is spread out more among the five major ratings services. (Includes two data tables.)

The biggest growth was in agency pass-throughs, while bank trading accounts saw a small decline in agency CMOs. (Includes two data tables.)

While bank call reports showed a small decline in CLO holdings, analysts estimate that CLOs held in loan format were up in the second quarter. (Includes data table.)

Combined, 17 MBS-focused REITs held $213.74 billion of residential MBS at midyear.