New issuance of residential MBS slipped modestly during the second quarter of 2012 despite a strong start in the securitization of deeply underwater Fannie Mae and Freddie Mac mortgages. A total of $378.04 billion of single-family MBS were issued during the second quarter, down 3.4 percent from the first three months of 2012, according to a new Inside MBS & ABS analysis. On a year-to-date basis, the market was still 30.5 percent ahead of issuance during the first half of 2011. The second quarter ended on a strong note. Total MBS production increased 12.5 percent from May to June, including a pickup in...