The most controversial part of the scheme: a 250% risk weight on agency MSRs...

Small issuers will have two options: sell production to aggregators rather than Ginnie or sell off mortgage servicing rights. 

Much of the downturn in bank ABS holdings reflects slumping fair-market values for these securities, but the industry also appeared to actively shed some assets. (Includes two data charts.)

Retail lending led the mortgage market to lower production volume in the third quarter as rates stayed stubbornly high and companies moved to cut overhead. (Includes six data charts.)

There haven’t been many capital markets deals lately because spreads are too wide, noted one panelist...

With interest rates steadily rising, MSR appreciation helped buoy results in the third quarter.

UWM had, by far, the most successful third quarter among publicly traded nonbank mortgage companies, boosting net income by 51% from the previous period. But others saw sharp declines in profitability and four nonbanks posted losses. (Includes data chart.)

Loan-level analytics can help small and mid-sized mortgage companies decide whether to sell or retain newly originated mortgage servicing rights as they plan survival strategies for an increasingly hostile market.

In addition, banks reported $35.6 billion of MBS in trading accounts, a significant 87.1% jump from 2Q22...

There's an iceberg of low-coupon MSRs out there...