The Trump administration has provided little guidance on how the GSEs will achieve their goal of purchasing $200 billion of agency MBS. Still, actions by Fannie and Freddie have helped competing agency MBS investors get comfortable with activity by the mortgage giants.
The Basel re-proposal from federal bank regulators includes provisions that would limit mortgage warehouse lending and securitization by banks, according to industry participants.
Lenders aren’t stretching to goose originations of GSE or government-insured loans. Issuance of agency MBS was fairly stable through the first half of 2026 and underwriting standards held firm, regardless of the presence of primary MI. (Includes three data tables.)
Carrington led MSR buyers in the first half of the year, focusing on loans with lower coupons. Bayview Asset Management ranked second, targeting mortgages with interest rates above 6.0%.
If the Federal Reserve is able to reduce inflation, Fed Chair Kevin Warsh believes that interest rates on mortgages will come down. Economists in the mortgage market aren’t expecting lower rates anytime soon.