Secondary markets

The record amount is largely a reflection of the two banner years the mortgage market recently enjoyed, but it’s also one of the smallest gains seen in recent years.

Fannie Mae delayed a scheduled residential mortgage bond on Thursday due to market volatility spurred by Russia’s invasion of Ukraine, according to people with knowledge of the matter.

The move confirms speculation that the Federal Housing Finance Agency would return to a pre-pandemic plan to tighten requirements for mortgage lenders and servicers that work with two government-sponsored enterprises.

Raising rates and running down the balance sheet “will bring down inflation over time," she said.

The 2022 origination outlook was dropped by $172 billion and for 2023, economists at the government-sponsored enterprise made a $226 billion reduction.

Despite a slowing in the private-label securitization market in January, lenders and investors are expecting a strong year for outside-the-box originations and their secondary market sales.

The portfolio is one of several particularly large, recent deals related to the cash-flows from mortgage payments, but it has an unusual composition.

"The quality of our new business is high. The pricing of that business does not reflect the capital requirements of our regulatory rule," CEO Hugh Frater said.

However, leadership noted that 2021 was the second record year for new single-family mortgages and also discussed how the government sponsored-enterprise plans to further rebuild its capital.

The return of foreclosures could increase enforcement and government-related loan buyers’ return to pre-pandemic plans to increase net worth, liquidity and other standards for counterparties.