Restrictions placed on the GSEs earlier this year by their regulator are prompting loan aggregators and lenders to sell agency-eligible mortgages for investment properties into the non-agency market.

In a recent advisory bulletin, the regulator directed the FHLBs to limit the size of their exposure to CMBS issued by Fannie Mae and Freddie Mac, and to ensure proper diversification of their portfolios.

Year-over-year, Bank of America increased its MBS holdings by a stunning 82.5%.

GSE securitization of investment-property mortgages fell by 33% on a sequential basis in the second quarter, while overall single-family GSE activity was down only 5%.

The issuance is the first of the year from Goldman with GSE-eligible mortgages for investment properties.

Production of jumbos and expanded-credit mortgages spiked while agency lending deflated.

Freddie's issuance fell by more than 50% from the first quarter and Fannie remained inactive.

Due to the similarities between the structures of the FHFA and the CFPB, some firms facing enforcement actions from the CFPB are hoping to have courts invalidate the actions.

JMP said it sounds like “these actions” by the GSEs “primarily targeted nonbank wholesale channel lenders, of which UWM [United Wholesale Mortgage] and HMPT are among the largest.”