Delinquencies are expected to increase primarily because the unemployment rate is projected to increase.

Ellington Financial is marketing a $450.7 million non-agency mortgage-backed security with mortgages for investment properties underwritten using debt service coverage ratios.

Pennymac issued an average of one non-agency MBS per month this year focused on GSE-eligible mortgages for investment properties. And Redwood is marketing its 13th jumbo MBS of the year.

"We are considering approaches to more granularly differentiate the riskiness of mortgages with benefits extending to financial institutions of all sizes, not just the largest banks," said Michelle Bowman, vice chair for supervision at the Federal Reserve.

FHFA disagreed with the GAO's assessment.

The Office of the Comptroller of the Currency is looking into developing a “simplified strategic plan process” for community banks to comply with the Community Reinvestment Act.

The conventional-conforming sector continued to account for the largest portion of originations, with a 52.2% share in the third quarter.

“Job gains in September, following the data blackout, are reassuring and suggest the economy is not slipping into a recession,” said Lawrence Yun, chief economist at the National Association of Realtors. “This may boost confidence in future homebuying.”

The Fed established the Bank Term Funding Program to help alleviate pressure faced by depository institutions holding MBS and other assets with large unrealized losses. Tracking usage of the BTFP in real-time was limited.

Lending was down slightly across products in the third quarter. UWM remained the largest conventional-conforming producer and moved into the top spot among originators of government-insured loans. (Includes two data tables.)