Issuance of both closed-end second liens and home equity lines of credit declined in the fourth quarter. For the full year, securitization of home equity loans dwarfed 2023. (Includes two data tables.)

Actions by the Federal Reserve are helping to reduce volatility in the agency MBS market. Investors are comfortable with current conditions, with supply and demand seen as being in balance.

The MBS is stocked with investment-property mortgages eligible for sale to the GSEs. Bayview Asset Management last issued a non-agency MBS on its Oceanview shelf in October 2022.

“We control an overnight rate,” the Federal Reserve chair noted.

For the year, Annaly had $1.01 billion of net income after taking a $1.64 billion loss in 2023.

Gains on servicing and interest rate swaps helped Two Harbors return to profitability.

White House Press Secretary Karoline Leavitt said an executive order aimed at reducing federal spending remained in effect.

Originations of first liens increased slightly in the fourth quarter. For the full year, production was up nearly 15% compared with 2023 as lower interest rates helped to boost lending. (Includes two data tables.)

For hours, it was unclear whether a White House memo freezing federal funding would impact mortgage programs. In the meantime, government agencies announced that their single-family mortgage programs were unaffected by the planned funding pause.

The Section 199A deduction for pass-through entities is set to expire at the end of this year. The Mortgage Bankers Association is pushing for an extension, which appears likely. The question is how Congress will pay for massive tax breaks.