When interest rates decline, the prepayment environment for agency MBS is likely to be much different compared with previous refinance booms, according to industry participants.

If Freddie Mac is allowed to purchase second mortgages, critics argue there should be clearly articulated capital requirements, loan-to-value ratio limits and debt-to-income ratio restrictions.

The decline was driven by conventional-conforming mortgages and government-insured mortgages. The securitization rate for non-agency mortgages actually jumped in the first quarter. (Includes data table.)

JPMorgan Chase and several other large bank holding companies boosted their holdings of agency MBS in trading accounts during the first quarter. (Includes two data tables.)

Ginnie offers new multiclass aggregation options; Fannie increases social bond disclosure; Annaly touts ESG efforts; new nonprofit advocates for greater parity for women in mortgage capital markets.

Most REITs reported declines in the fair value of their agency MBS during the first quarter of 2024. Non-agency MBS holdings were up, as were net TBA positions. (Includes two data tables.)

SIFMA warned that Freddie’s proposal to acquire second liens could pose risks to the to-be-announced, credit-risk transfer and consumer-loan markets. SFA said the proposal, if approved, should be limited.

Demand in the secondary market for non-qualified mortgages is helping to fuel originations of the loans. Delinquencies in the sector have ticked up but aren’t yet a major concern.

With an eye toward attracting more mature ESG investors from Europe, Fannie and Freddie updated their Mission Index scoring.

Wells Fargo was the only top-tier bank to boost its residential MBS portfolio in the first quarter, including a significant increase in its Ginnie pass-throughs. (Includes two data tables.)