Foreign investors, mutual funds and pension accounts all gave way to the massive $550 billion increase in the Federal Reserve's MBS holdings. But depository institution portfolios managed to keep growing. (Includes three data charts.)
Facing pressure from both sides of the aisle, FHFA Director Mark Calabria said if the GSEs had come into the current crisis with sufficient capital, the adverse market fee could have been delayed for a few years.
Ginnie Mae regained some share in the agency MBS market in August, as did purchase mortgages. The top 100 sellers saw a small increase in their share of new issuance, but the market remained fragmented. (Includes two data charts.)
Some industry groups are concerned that the CFPB’s proposal to revise general QM standards contains unclear underwriting standards and legal uncertainties. They support the development of self-governance standards for the non-agency market.