"Current sentiment reflects pent-up frustration with the overall lack of purchase affordability," said Doug Duncan, a senior vice president and chief economist at Fannie Mae.

Morgan Stanley and Chase are marketing prime non-agency MBS with loans eligible for sale to the GSEs.

Issuance jumped in May and volume year-to-date is well above the level of issuance seen in the first half of 2023. Investor demand has remained strong amid the surge in issuance.

The SEC or another federal entity should map credit ratings among competing rating services, similar to efforts by regulators in other countries, according to Morningstar. The firm said rating mapping can help keep competition strong among rating services.

Fitch is allowing ratings for certain CRT issuance from banks to be higher than the rating on the issuer. The deals need various features to receive higher ratings.

Ginnie offers new multiclass aggregation options; Fannie increases social bond disclosure; Annaly touts ESG efforts; new nonprofit advocates for greater parity for women in mortgage capital markets.

The broker channel remains the smallest of the three primary origination channels, though it showed the most growth in the first quarter. An estimated 19.1% of first-lien originations came through brokers.

Servicers are working to shift from reaction-based investments in technology to forward-looking measures. That includes the use of artificial intelligence.

Available home equity looks likely to suppress mortgage delinquencies.

“The Biden administration is committed to fostering innovation in the financial sector while ensuring that we protect consumers, investors, and our financial system from risks that new technologies pose,” said Nellie Liang, under secretary for domestic finance at the Treasury.