Banks have gone from being reliable buyers of agency MBS to cautious holders of the securities, prompting wider spreads and opportunities for nonbank investors.

At one point, First Republic Bank was a major contributor to non-agency MBS. In recent years, the bank retained its production, though JPMorgan Chase could move to sell the loans.

New disclosure portal for Freddie MBS investors; Ginnie details LIBOR transition plan for multifamily MBS; Andrew Davidson offers prepayment analysis for specified pools; DBRS proposes revisions to rep and warrant criteria.

The banks had weathered volatility in March and April.

Servicing drove earnings while lending generated a loss.

Servicing still looks more attractive than lending at the moment.

Locks for both purchase mortgages and refinances declined.

A combination of internal mismanagement and lax regulation led to the failures of Silicon Valley Bank and Signature Bank, according to reviews by the Fed and the FDIC. The regulators plan to tighten regulation of banks, including a focus on interest rate risk.

Applications for refinances increased by 1.0% last week and applications for purchase mortgages declined by 1.0%.

The regulator issued a proposed rule to set ability-to-repay standards for PACE loans.