John Bancroft

Earnings reports from 26 publicly traded banks show just over half reported gains in mortgage-banking income from 3Q to 4Q.

Most of the decline was in held-to-maturity accounts, but that may have been the result of an accounting reclassification.

Most of the fourth-quarter activity came from the Federal Reserve’s efforts to enhance its holdings of Freddie Mac paper.

Fourth-quarter declines in agency MBS portfolios at Annaly and AGNC were key to an overall downward drift in REIT MBS holdings. (Includes two data tables.)

Agency single-family business was down in February in almost every category, but 2025 so far is running ahead of last year’s pace. Ginnie reported a surge in modified-loan securitization.

Fannie/Freddie MBS pools with maximum credit scores of 700 or less were the most sought-after “story” in 2024, with issuance jumping 64% from the previous year.

The share of specified pools of GSE MBS increased from 40.7% in 2023 to 44.4% last year.

Among 16 REITs that focus on investments in mortgage assets, holdings declined by 3.7% during the fourth quarter.

Mortgage-banking income reported by nonbank lenders nearly tripled in the fourth quarter to $3.86 billion. The gain came from massive markups of MSR values thanks to rising interest rates.

U.S. depository institutions remained key players supporting the MBS market, but their combined holdings declined in the fourth quarter. Mutual funds and life insurers picked up the slack. (Includes three data tables.)