The Latest Mortgage Backed Securities Industry Statistics Explained
In 2019, the total value of Mortgage-Backed Securities (MBS) stood at approximately $9.9 trillion.
The statistic states that in 2019, the combined worth of Mortgage-Backed Securities (MBS) was around $9.9 trillion. MBS are financial instruments that represent an ownership interest in a pool of mortgage loans, with the cash flows from the underlying mortgages passed through to investors. The total value of MBS reflects the amount of capital invested in this type of security during the specified year. This significant figure indicates that MBS, which play a crucial role in the housing finance market by providing liquidity and funding for mortgage lending, were widely utilized by investors in 2019. The size of the MBS market suggests that it continues to be a prominent asset class within the broader financial landscape, impacting both individual investors and the overall economy.
The MBS market counts for over 20% of the total U.S bond market.
The statistic that the Mortgage-Backed Securities (MBS) market accounts for over 20% of the total U.S bond market indicates the significant size and influence of MBS within the overall bond market in the United States. MBS are financial securities that are backed by a pool of mortgage loans, and their prominence reflects the importance of the housing market within the broader financial system. The fact that MBS constitute more than a fifth of the total U.S bond market highlights the substantial role that housing-related assets play in shaping the dynamics and performance of the bond market as a whole. This statistic underscores the significance of MBS in investment portfolios, financial markets, and the broader economy.
In 2010, approximately 80% of mortgage-backed securities were issued by government-sponsored entities like Fannie Mae.
In 2010, approximately 80% of mortgage-backed securities were issued by government-sponsored entities like Fannie Mae. This statistic indicates a significant level of market dominance and influence by government-sponsored entities in the mortgage-backed securities market during that year. Mortgage-backed securities are financial products that bundle together individual mortgages into a single security that can be traded on the open market. The high proportion of securities issued by government-sponsored entities suggests a heavy reliance on these entities to provide liquidity and stability to the mortgage market. This level of involvement from government-sponsored entities may have implications for both the overall health of the housing market and the broader economy, as their actions and policies can have far-reaching impacts on mortgage lending and availability of credit to borrowers.
The mortgage securitization rate was 61.2% in 2020, down from 85%-90% before the 2008 financial crisis.
The statistic indicates that the mortgage securitization rate, which represents the proportion of mortgages that are bundled together and sold as securities to investors, was 61.2% in 2020. This marks a notable decline from the range of 85%-90% seen before the 2008 financial crisis. The decrease in the securitization rate suggests a shift in the housing market dynamics and financial practices since the crisis, where there was a heavy reliance on securitization as a means of dispersing risk. The lower securitization rate post-crisis could indicate increased caution or regulatory changes aimed at avoiding previous pitfalls associated with high levels of mortgage securitization, highlighting a potentially more conservative approach in mortgage financing and investment strategies.
Commercial mortgage-backed securities issues reached $97.8 billion in the U.S in 2019.
The statistic ‘Commercial mortgage-backed securities issues reached $97.8 billion in the U.S in 2019’ indicates that a significant amount of capital was raised through the issuance of commercial mortgage-backed securities (CMBS) in the United States during the year 2019. CMBS are financial instruments that pool together various mortgages on commercial properties and then sell slices of this pool to investors. The fact that $97.8 billion worth of CMBS were issued suggests strong demand for commercial real estate financing and investment opportunities in the U.S. during that year. This figure reflects the substantial scale of the commercial real estate market and the importance of CMBS as a capital-raising tool for property owners and investors.
As at 2017, private-label MBS account for less than 1% of total MBS issued.
The statistic “As at 2017, private-label MBS account for less than 1% of total MBS issued” indicates that the market for private-label mortgage-backed securities (MBS) was relatively small in 2017 compared to the total issuance of MBS. Private-label MBS are securities backed by mortgages that are not guaranteed by government-sponsored enterprises like Fannie Mae or Freddie Mac. The fact that they accounted for less than 1% of total MBS issuance suggests that investors and issuers were primarily focused on agency-backed MBS, which are generally considered less risky due to the implicit government guarantee. This statistic also implies that private-label MBS may have been less attractive or had lower demand among investors in 2017.
Approximately 70% of all U.S. mortgages are securitized.
This statistic indicates that around 70% of all mortgages in the United States are securitized, meaning they are bundled together and sold as securities to investors. Securitization allows financial institutions to transfer the risk of mortgage defaults to investors, enabling them to free up capital for additional lending. This practice played a significant role in the 2008 financial crisis, as many securitized mortgages were of poor quality and led to widespread defaults. Despite this risk, securitization remains a common practice in the U.S. mortgage market, providing liquidity and enabling banks to continue issuing loans to borrowers.
In 2021 Q1, Agency MBS accounted for 61% of total net issuance of securities in the U.S.
In the first quarter of 2021, Agency MBS (Mortgage-Backed Securities issued by government-sponsored enterprises like Fannie Mae and Freddie Mac) represented 61% of the total net issuance of securities in the United States. This statistic indicates that a significant portion of new securities issued during that period were in the form of Agency MBS. The high percentage suggests that investors and financial institutions were actively participating in the mortgage market by investing in these securities, likely driven by factors such as low interest rates, housing market conditions, and investor confidence in the government backing of these securities. The data highlights the importance and dominance of Agency MBS within the U.S. securities market during the first quarter of 2021.
As of 2019, the total outstanding balance of multifamily mortgage-backed securities stood at $617 billion.
The statistic “As of 2019, the total outstanding balance of multifamily mortgage-backed securities stood at $617 billion” indicates the cumulative value of mortgage-backed securities tied to multifamily properties that were still outstanding at the end of 2019. This figure represents the total amount of debt that investors have financed through these securities, usually through the pooling of multiple mortgages on apartment buildings or other multifamily residential properties. The size of this outstanding balance highlights the significant scale of investment in the multifamily real estate market and suggests both the sector’s importance in the broader economy and the level of risk exposure for investors in these securities.
In 2020, Fannie Mae issued $637 billion in MBS.
In 2020, Fannie Mae issued $637 billion in Mortgage-Backed Securities (MBS), which refers to a financial instrument backed by a pool of mortgages. This statistic indicates the substantial scale of Fannie Mae’s activities in the mortgage market during the year, reflecting the organization’s role in facilitating liquidity and capital in the housing market by purchasing mortgages from lenders and bundling them into securities for sale to investors. The issuance of MBS by Fannie Mae plays a critical role in ensuring the availability of mortgage financing by providing a market for mortgage lenders to sell their loans, thereby enabling them to continue originating new mortgages. The $637 billion figure showcases the significant impact of Fannie Mae in the housing finance sector, contributing to the overall stability and efficiency of the mortgage market.
In 2020, Freddie Mac issued $477 billion in single-family mortgage-backed securities.
In 2020, Freddie Mac, which is a government-sponsored enterprise specializing in mortgage-backed securities, issued a total of $477 billion in single-family mortgage-backed securities. This statistic indicates the substantial scale of financial activities undertaken by Freddie Mac in the housing market during that year. Mortgage-backed securities are financial assets that represent a bundle of individual mortgages, providing investors with exposure to the residential real estate market. The issuance of such a large volume of mortgage-backed securities by Freddie Mac implies significant involvement in facilitating the flow of funds in the housing finance sector, which has broader implications for homeowners, investors, and the overall economy.
In 2019, non-agency RMBS issuance in the U.S reached $108 billion, representing a 962% increase since 2011.
The statistic provided indicates that the issuance of non-agency residential mortgage-backed securities (RMBS) in the United States increased significantly from $10.2 billion in 2011 to $108 billion in 2019, demonstrating a remarkable 962% growth over the eight-year period. Non-agency RMBS are securities backed by residential mortgages that are not guaranteed by government-sponsored entities like Fannie Mae or Freddie Mac. This surge in issuance reflects a renewed interest in the non-agency RMBS market as investors seek higher-yielding assets in a low interest rate environment. The substantial increase in issuance suggests a growing confidence in the housing market and overall economic conditions, as well as a willingness among investors to take on more risk for potentially higher returns.
Commercial mortgage-backed securities delinquency rates reached 9.6% in July 2020, the highest level since 2012.
The statistic indicates that as of July 2020, the delinquency rate for commercial mortgage-backed securities (CMBS) had risen to 9.6%, marking the highest level since 2012. This means that a significant portion of commercial property loans bundled into CMBS were not being repaid on time, reflecting financial distress among borrowers. The increase in delinquency rates may be attributed to economic challenges such as the impact of the COVID-19 pandemic on businesses, leading to struggles in making mortgage payments. The rising delinquency rates highlight potential risks for investors holding these securities, as defaults and foreclosures could increase, impacting the overall performance of CMBS investments.
As of 2019, Ginnie Mae holds a 21% share of total outstanding residential MBS.
This statistic indicates that as of 2019, Ginnie Mae, which is the Government National Mortgage Association, holds a significant portion of the total outstanding residential Mortgage-Backed Securities (MBS) market. Specifically, Ginnie Mae accounts for 21% of the total outstanding MBS in the residential market, showcasing its substantial presence and influence in the housing finance sector. Ginnie Mae plays a crucial role in providing liquidity and stability to the mortgage market by guaranteeing MBS backed by federally insured or guaranteed loans, such as those insured by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). This statistic underscores Ginnie Mae’s importance in facilitating access to affordable housing financing for borrowers while also managing risk for investors in the MBS market.
Single-family MBS issuance in Q4 2020 was $848 billion, up from $463 billion in Q4 2019.
The statistic states that the issuance of Single-family Mortgage-Backed Securities (MBS) in the fourth quarter of 2020 was $848 billion, showing a significant increase from the $463 billion issued in the same quarter of the previous year, 2019. This indicates a notable rise in the amount of securities backed by single-family mortgages being packaged and sold to investors in the secondary mortgage market. The increase in issuance could be attributed to various factors such as lower interest rates, increased demand for mortgage-backed investments, or higher levels of mortgage refinancing activity during the specified time period.
In 2020, Non-Agency securities represented around 10% of the total mortgage-backed security activity.
In 2020, the statistic indicates that Non-Agency securities comprised approximately 10% of all mortgage-backed security (MBS) transactions. Non-Agency securities are not backed by government-sponsored entities like Fannie Mae or Freddie Mac, making them riskier but potentially offering higher returns. This suggests that a significant portion of the MBS market in 2020 involved securities issued by private entities rather than those guaranteed by the government. The proportion of Non-Agency securities at 10% highlights the diversity within the MBS market, with investors likely weighing the risk-return trade-off between government-backed and private securities when making investment decisions.
Outstanding commercial/Multi-family mortgage debt rose to $3.76 trillion at the end of Q3 2020.
The statistic ‘Outstanding commercial/Multi-family mortgage debt rose to $3.76 trillion at the end of Q3 2020’ indicates that the total amount of debt held by commercial properties and multi-family units increased to $3.76 trillion by the third quarter of 2020. This signifies a growth in borrowing and financing activities within the commercial real estate sector, potentially driven by factors such as low interest rates, expansion of businesses, or investments in real estate properties. The rise in mortgage debt could also suggest optimism in the market or a response to economic conditions and policy changes occurring during the specified time period.
In 2020, Fannie Mae’s single-family serious delinquency rate was 3.24%.
The statistic reveals that in the year 2020, Fannie Mae, which is a government-sponsored enterprise specializing in providing liquidity for mortgage providers, experienced a single-family serious delinquency rate of 3.24%. This rate represents the percentage of single-family residential mortgages that were past due by 90 days or more, indicating a higher risk of foreclosure. This statistic is an important indicator of the health of the housing market, reflecting the ability of homeowners to meet their mortgage obligations during a challenging economic environment such as the one experienced in 2020 due to the COVID-19 pandemic.
In 2019, only $3 billion of adverse select non-agency mortgage-backed securities were issued, down from a peak of $20 billion in 2013.
The statistic indicates that in 2019, the issuance of adverse select non-agency mortgage-backed securities was relatively low, amounting to only $3 billion. This represents a significant decrease from the peak issuance of $20 billion observed in 2013. Adverse selection refers to a situation where individuals or entities with higher risk profiles are more likely to participate in a particular market, leading to adverse outcomes for investors. In the case of non-agency mortgage-backed securities, the decrease in issuance of adverse select securities suggests that the market may have become more discerning in its risk assessment and selection process, potentially leading to a reduction in overall risk exposure associated with these securities.
Mortgage-backed securities yields averaged 2.16% in August 2021.
The statistic indicates that the average yield on mortgage-backed securities (MBS) was 2.16% in August 2021. MBS are financial products that are backed by a pool of mortgage loans, and the yield represents the annual rate of return that investors receive from holding these securities. A yield of 2.16% suggests that investors could expect to earn this percentage on their MBS investments over the course of a year during August 2021. The yield on MBS is influenced by various factors such as changes in interest rates, housing market conditions, and credit risk associated with the underlying mortgages. This statistic provides insights into the returns available to investors in the MBS market during the specific time period.
References
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