Secondary

Federal Reserve Bank of Dallas President Robert Kaplan said the central bank should roll off both mortgage-backed securities and Treasury holdings when it begins to let its balance sheet shrink.

Despite the additional risks, originating mortgages for landlords of single-family rentals could help lenders fill the gap of waning refinance volume.

Fannie Mae has obtained reinsurance for $510 million of credit losses on $20.4 billion of single-family residential mortgages through a pair of credit insurance risk transfer transactions.

With refinance volume shrinking, some lenders are making up the difference by turning to alternative loan products for borrowers with lower credit scores.

Higher interest rates have reduced prepayments to levels not seen since 2014.

Freddie Mac will soon allow automated underwriting of borrowers who lack scores but have other financial records.

Servicers are able to borrow more against their Ginnie Mae mortgage servicing rights as financing providers become more comfortable with the collateral.

Lennar Corp. reported fiscal first-quarter earnings that beat analysts' estimates and said new orders increased, signaling the start to a strong spring selling season.

Shellpoint is marketing another offering of private-label mortgage bonds backed primarily by loans it acquired rather than loans originated by its own New Penn subsidiary.

With interest rates on the rise, analysts say the Fed could start shrinking its unprecedented $1.75 trillion position in mortgage-backed securities by year-end.