Spreads on various types of residential MBS are wider than they were during the early days of the pandemic, suggesting that the assets aren’t particularly attractive to investors. However, that isn’t necessarily true.

Industry groups argue that assessing fees on commingled collateral could undermine market confidence in the UMBS.

The REIT has built up strong residential and MSR businesses to diversify risk and support its agency prowess. And while it’s held back on increasing leverage, once volatility declines, all that may change.

While the market value of residential MBS fell in the first quarter, the volume of outstanding securities continued to grow. (Includes two data charts.)

An unexpected surge in inflation briefly created a “no-bid” moment for agency MBS.

Fannie Mae will publish refi application activity on a weekly basis, helping MBS investors better gauge prepayment trends.

The impact of the Federal Reserve’s balance sheet reduction is expected to be equivalent to a 50-basis-point increase in the federal funds rate.

Portfolio holdings of agency MBS fell mostly due to lower market value for the assets. REITs also recorded a significant drop in TBA investments as agency MBS issuance declined. (Includes data chart.)

Some experts now say Federal Reserve purchases of agency MBS will fall to zero by September.

The Mortgage Bankers Association has asked the SEC to review the margin requirements in Rule 4210, arguing that lenders use to-be-announced securities to hedge their interest rate exposure rather than for speculation purposes.