While the GSEs are under mandates to shrink their retained portfolios, Freddie’s holdings increased in the final three months of 2022. (Includes data chart.)
Redwood Trust isn’t planning to ramp up acquisitions and sales of prime non-agency mortgages in the near term due to elevated interest rates and strong competition from banks for jumbos.
The MBS and ABS markets would experience significant volatility if the federal government doesn’t increase its debt limit. Uncertainty on the outcome is already prompting conservative moves among major investors.
FHA and VA are collaborating with Ginnie Mae on new low- to moderate-income disclosures for MBS pools to help investors meet environmental, social and governance mandates.
Ginnie announces new LMI ESG disclosures; HUD seeks comments on proposal to expand housing counseling tailored to tribal communities; HUD issues RFI on learning agenda supplement; Housing and Insurance subcommittee chair named; House committee disallows changes to veterans’ ability to testify virtually; USDA updates handbook.
Issuance of prime non-agency MBS nearly ground to a halt during the fourth quarter. For the full year, activity was down almost 60%. (Includes three data charts.)
Shellpoint Mortgage Servicing handled servicing duties on close to 50% of the non-agency MBS issued in the fourth quarter. Select Portfolio Servicing reduced its activity during the quarter. (Includes data chart.)
Rising interest rates and financial volatility battered the non-QM market in 2022. This year almost has to be better by default, according to industry participants.