The sentiment among investors at the ABS East conference this week was overwhelmingly positive. Attendance at the event hit a record, and investor demand for MBS and ABS is expected to remain strong into 2026, buoyed by anticipated interest rate cuts by the Fed.

Trade groups representing smaller lenders called on the Trump administration to prompt the GSEs to increase their holdings of MBS as a way to reduce mortgage rates.

Originations of first-lien mortgages declined by 2.0% on a quarterly basis to an estimated $485.0 billion in the third quarter. Nine months into the year, lending was up 10.8% on an annual basis.

“Our agency portfolio benefitted from meaningful spread tightening during the quarter driven by increased MBS demand and declining volatility,” said David Finkelstein, CEO and co-chief investment officer of the REIT.

“Someday hopefully the mortgage market will come back, and that will help us but ... we’re not counting on it,” said Rajinder Singh, chairman, president and CEO of BankUnited.

Many expect issuance of both expanded-credit MBS and securitizations of home equity loans in 2026 to top the volume seen this year.

Attendance at ABS East hit another record this year.

The Ohio-based bank had $43 million in mortgage-banking income in the third quarter, up 54% from the second quarter.

The prepayment rate on agency MBS reached the highest level in 11 months in September, with another increase expected in October.

Equifax and Experian made similar moves recently.