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 changes are focused on rating criteria for private student loans and will have a mixed impact on outstanding deals. Industry had raised concerns about the proposal, but Moody’s pushed forward.
The final rule will allow lenders to disburse up to 1% of FHA-endorsed multifamily construction loan proceeds before borrower-provided funds are fully exhausted.
Most REITs reported substantial increases in their agency MBS holdings during the third quarter, although a few firms pulled back. Non-agency MBS were up slightly; MSR declined.