Much of the decline was the result of a change in how Freddie Mac classifies loans subject to a repurchase claim for which the seller has provided a remedy.
Freddie repurchases dropped in the third quarter as the GSE changed how it classifies loans with defects that have been cured by the seller. Withdrawn buyback claims were up. (Includes three data tables.)
Most REITs reported substantial increases in their agency MBS holdings during the third quarter, although a few firms pulled back. Non-agency MBS were up slightly; MSR declined.
S&P remained the top provider of ABS ratings at the nine-month mark despite a 24% drop in the third quarter, while Fitch held its lead rating residential MBS. (Includes two data tables.)
Agency single-family MBS issuance rose 7% in November, hitting its highest monthly output in two years. Most of the gain came from continued growth in refinancing, especially rate-term transactions. (Includes two data tables.)
A number of large banks have significantly scaled back their use of FHLBank advances, which is having an impact on the system’s income. In addition to rising voluntary investment in housing, the FHLBanks have boosted their single-family mortgage portfolios. (Includes three data tables.)
With originations and loan sales rising across the industry in the third quarter, most companies booked income gains from those activities. Servicing, however, was a different matter. (Includes data tables.)
With record levels of new CLO coming to market over the past six months, commercial banks have stayed on the sidelines, allowing their CLO portfolios to slowly decline. (Includes data table.)