Non-agency CMBS issuance doubled from the second to the third quarter, but production remained well below 2019 levels. Agency multifamily MBS set a record. (Includes data chart.)

With a relatively high share of borrowers missing mortgage payments, investors in non-agency MBS are seeing reduced cash flows and, in some cases, losses. Though mortgage performance is improving, the outlook for investors remains uncertain.

Fannie and Freddie reported strong gains in net income during the third quarter, and the ongoing mortgage-market boom pumped up their retained mortgage holdings. (Includes data chart.)