Depository institutions added some $68.55 billion of single-family MBS to their holdings during the third quarter.

The fastest-growing sectors of the MBS market in the third quarter were Ginnie Mae and the non-agency market. Banks, foreign investors, money managers and insurance companies easily offset the slow decline in the Fed’s portfolio. (Includes two data tables.)

A group of 16 mortgage REITs held $196.29 billion of residential MBS on their books at the end of September.

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 Withdrawn buyback claims were up.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.)

JPMorgan Chase, the system’s biggest member, reduced its FHLBank advances by 20.3% over the past year.

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.)