Despite rising rates and volatility, mortgage REITs reported a small gain in their retained agency MBS holdings. The industry’s aggregate TBA position was lower, as was non-agency MBS investment. (Includes data chart.)

With rated issuance tumbling sharply in the third quarter, only Fitch managed to boost its ABS business, while DBRS was the only rating service to show a gain in non-agency MBS. (Includes two data charts.)

A nonbank can only hold underwater non-QMs for so long until a decision needs to be made. In the case of Angel Oak, it decided to sell roughly $350 million of product at a steep discount of 83 cents on the dollar.