Spec pools accounted for more than half of GSE single-family MBS issuance in early 2025.

Servicing income helped cover for a decline in production income.

Many banks reported sharp declines in mortgage originations — and income derived from it — in the first quarter of 2025. But gains from MSR hedging activity made up for the decline in production. (Includes data table.)

A surge in refinance activity — especially rate-term transactions — provided much of the fuel for April’s 16% increase in agency single-family MBS. So far, 2025 is running 14% ahead of last year’s pace. (Includes two data tables.)

With specified pools accounting for half of GSE single-family MBS issued in the first quarter, the most popular option was MBS with high social-mission scores. (Includes data table.)

While new production of CLOs backed by broadly-syndicated loans and middle-market loans fell sharply in the first quarter, issuance of CRE deals increased significantly. Nearly two-thirds of CLO activity were reset transactions. (Includes two data tables.)

Hefty increases in vehicle loans and business finance boosted ABS issuance to $94 billion in the first quarter, an 82% gain from the prior period. GM Financial was the top ABS issuer, while Bank of America ranked first in underwriting. (Includes three data tables.)

Onslow Bay Financial, a subsidiary of Annaly, was the biggest buyer of MSRs in the first three months of 2025.

While several top buyers of bulk MSR focused on high-coupon servicing from which they can harvest refinance business, the first quarter’s top buyer was mostly interested in prepay-protected lower-rate MSR. (Includes three data tables.)

Mortgages with interest rates above 6.0% accounted for 18.2% of the agency servicing market as of the end of March.