A shot of lower mortgage rates would help a sagging agency MBS market as July saw declines in both purchase-mortgage and refinance activity. ARMs are having a moment. (Includes two data tables.)

A key factor for some banks appeared to be a sharp decline in provisioning for credit losses.

Production-related income rose smartly for most banks in the second quarter of 2025 but generally didn’t keep pace with higher originations volume. Results were mixed on the servicing side. (Includes data table.)

CLO restructuring and refinance activity fell significantly in the second quarter from the booming levels of the previous six months, but new issuance saw strong growth. (Includes data tables.)

Much of the downturn was in pools with high concentrations of loans that accomplish GSE missions and other social goals.

Despite big declines in securitization of auto loans and equipment financing, several other ABS categories saw increased issuance in the second quarter. (Includes three data tables.)

While issuance of specified pools with high GSE mission-density scores declined in the second quarter, there was a significant increase in pools with FICO scores below 700. (Includes data table.)

There was a sharp 20.6% decline in transfers of high-coupon MSR exceeding 6%.

Bulk transfers of agency MSR declined in the second quarter, partly due to reduced demand for higher-coupon portfolios. While coissuance volume was up, it failed to match the gains in agency securitization of lightly seasoned mortgages. (Includes three data tables.)

Expanded-credit MBS issuance was up 25.4% from the first to the second quarter, while prime MBS saw a solid 12.6% gain. JPMorgan Chase ranked as the top issuer and underwriter of non-agency MBS. (Includes three data sets.)