Banks and thrifts saw another drop in their MBS holdings in the first quarter of 2013 despite holding their own against the Federal Reserves voracious appetite for agency MBS. A new Inside MBS & ABS analysis of bank and thrift call reports reveals that industry investment in residential MBS fell 1.1 percent during the first quarter of 2013 to $1.562 trillion. That was down 4.4 percent from the record $1.634 trillion of MBS held in portfolio by banks and thrifts at the end of the first quarter of last year. Banks reported...[Includes two data charts]
The $443 million non-agency MBS, Chases second of the year, is set to receive AAA ratings with credit enhancement ranging from 6.90 percent to 10 percent for the top tranches.
Mortgage bankers originated $54 billion of jumbo loans in the first quarter, a slight decline from the prior period but the second best showing in two years.
The two biggest components of the residential mortgage market conventional loans below the conforming loan limits and government-insured mortgages saw measurable declines in new originations in early 2013, according to a new Inside Mortgage Finance analysis and ranking. The conventional-conforming market nearly all of which is financed through Fannie Mae and Freddie Mac securitization fell to an estimated $333.0 billion during the first quarter of 2013. That was down 5.4 percent from the fourth quarter of last year, but the sector still accounted for a hefty 66.6 percent of total originations during the period. The conventional-conforming market share hasnt changed...[Includes two data charts]