REITs increased their holdings of agency MBS during the second quarter while reducing investments in non-agency MBS and credit-risk transfer securities.
Improving efficiency played a big role in boosting mortgage-banking profits in the second quarter as gain-on-sale margins narrowed while servicing took a hit on net MSR valuation. (Includes data table.)
Cash-out transactions still account for most agency refinance activity, but August brought a surge of rate-term refis into agency MBS, with the biggest increase in the Ginnie Mae market. (Includes two data tables.)
AGNC Investment gained some ground on REIT-leader Annaly Capital Management in the agency MBS sector. Industry holdings of non-agency MBS and whole loans fell in the second quarter. (Includes two data tables.)
Most lenders reported rising production volume, but shrinking margins ate into bottom-line profitability. Servicing results depended on how successful the firms were in hedging MSR. (Includes data table.)
Wells Fargo moved deeper into Ginnie Mae pass-throughs while JPMorgan Chase upped its holdings of GSE pass-throughs. Bank of America, Charles Schwab and U.S. Bank all reduced their MBS holdings in the second quarter. (Includes two data tables.)
Portfolio restructuring by the Federal Reserve accounted for about a third of new Fannie and Freddie Supers issuance in the second quarter, but volume is slowing down. (Includes two data tables.)