Agency pass-through MBS remain the most popular asset in bank holding company trading accounts, but there was a sharp increase in agency multifamily securities during the third quarter.

The securitization rate for residential mortgages hit an estimated 68.6% in the third quarter, as more conventional-conforming loans flowed into GSE MBS.

Ginnie Mae increased its employee base by 25% on an annual basis in fiscal year 2024. Still, the agency is reliant on contractors, which accounted for more than 80% of Ginnie’s expenses.

GA-based lender and servicer Groundfloor hit the ABS market for the first time by issuing a securitization with deferred payments tied to residential transition loans.

In business for 40-plus years, FCI has stuck to its knitting of servicing delinquent and nonprime product. According to management, it’s secret sauce is focusing on state-of-the-art technology, including AI.

The new bonds help the GSEs reduce the amount of capital they must set aside under the enterprise regulatory capital framework.

The investment vehicle plans to mainly buy whole loans, but may also purchase ABS.

Rising mortgage delinquencies increase spreads on residential MBS, as expected, along with spreads on credit card, student loan and auto loan ABS.

The fastest-growing sectors of the MBS market in the third quarter were Ginnie Mae and the non-agency market. Banks, foreign investors, money managers and insurance companies easily offset the slow decline in the Fed’s portfolio. (Includes two data tables.)

The Supreme Court’s decision to let a lower court’s ruling stand allows the bureau to watch over certain ABS market participants.