Secondary

The move follows two consecutive quarterly losses for the REIT and comes just days after its sister non-QM lending business laid off 20% of its staff.

The one established during the pandemic got little use because other government actions led to a refinancing boom, but a housing official fears the industry won't be so lucky next time.

A whistleblower complaint on a $250,000 retention award for a Fannie Mae senior executive prompted the investigation of the Federal Housing Finance Agency's procedures.

The mortgage company plans to buy some of this servicing and also invest in building out technology and default services, Chairman and CEO Jay Bray told attendees at an industry conference.

While the agency affirmed the bank's current high ratings, it also cited instances of noncompliance, which led to the downgrade.

As uncertainty around global inflation has shocked the broader market, MBS have undergone some sharp one-day moves.

The Federal Housing Administration also announced it would incorporate similar borrower history into its underwriting beginning at the end of October.

"To talk about 95% of issuers by count being compliant without recognizing that a very large number of issuers hold few MSRs is disingenuous," one industry executive told the chairman of Whalen Global Advisors.

Experts review scenarios that could cause Federal Reserve chairman Jerome Powell to reverse course on a decision this week that left some lenders breathing a sigh of relief.

The Fed chair said actively selling securities will become necessary as it looks to reduce its balance sheet, but not anytime soon.