Issuance of agency MBS during April-June rose 43% from the first quarter of the year, with gains posted across the board. Combined issuance by Fan-nie Mae, Freddie Mac and Ginnie Mae hit $330.65 billion.
The robust second quarter brought year-to-date agency MBS issuance to $562.02 billion, just 1.3% below the level reached in the first six months of last year.
Robust homebuying activity brought a huge increase in purchase mortgages into the Ginnie Mae MBS program in the second quarter. Rate-term refinance activity was up sharply.
In terms of risk layering, some 10.5% of bank loans were in the lowest risk category, with high credit scores and low loan-to-value ratios. Just 8.8% of nonbank loans were in that bucket, according to Inside The GSEs.
Historically, Fannie sellers have repurchased far more loans ($49.64 billion) than have Freddie sellers ($29.94 billion). But most of that disparity occurred before 2014…
Nine of the top 10 bank loan sellers reported reduced secondary market activity in the first quarter. Citigroup was an outlier, more than doubling its fourth-quarter volume.
Nonbanks have increased their role in the selling and servicing of Fannie/Freddie mortgages. Nonbanks also sell somewhat riskier loans for which the GSEs are paid higher guarantee fees.