Banks and thrifts reported substantial growth in their retained home mortgages, including a surge in ARM holdings. Freddie was the fastest-growing MBS market.

Combined, Fannie Mae, Freddie Mac and Ginnie Mae accounted for 63.0% of total home mortgage debt outstanding at the end of June.

Three large nonbanks led the pack in GSE buybacks during the second quarter: Quicken Loans, Caliber Home Loans and loanDepot…

Seller repurchases of Fannie/Freddie loans rose 17% from the first to the second quarter, with 82% of them related to loans securitized in 2018 and 2019.

Roughly 30% of mortgage originations in 2018 were sold by lenders to an unaffiliated buyer. Correspondent activity was strongest in the government-insured market.

Mortgage lenders continued to repurchase significantly more Freddie loans than Fannie loans, although buyback activity still represents a tiny fraction of GSE business.

Data from the MBA performance study suggest that improved efficiency and strong originations were key to increased production income.

Read the tea leaves: Just 56.4% of second-quarter loan originations have been pooled in MBS. In recent years, the overall securitization rate has run at about 70%.

Nearly $320 billion of newly originated home loans were funneled into the MBS market during the second quarter, but that represented just 56.4% of new production in the primary mortgage market.

DBRS and Fitch were the top rating services in non-agency MBS mostly because they cover a lot of scratch-and-dent transactions. S&P excels in nonprime, Moody's in jumbo.