High-balance loans accounted for 4.4% of total agency MBS issuance in the third quarter.

Fannie’s MBS holdings spiked to $54.65 billion as of the end of the month.

“The council is working with member agencies to consider where aspects of the U.S. financial regulatory framework impose undue burdens and where they harm economic growth, thereby undermining financial stability,” Scott Bessent, secretary of the Treasury Department, said of the Financial Stability Oversight Council.