The bulk of the potential benefits from the post-housing crisis structural changes to the mortgage market haven’t been realized yet, American Capital Agency and American Capital Mortgage CIO Gary Kain said in the firm’s Mortgage REIT day presentation.

For starters, Kain said, mortgage backed security bond purchases by the Federal Reserve as part of quantitative easing dwarfed the declines in the GSEs’ portfolios.

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The GSEs/FHA still account for the vast majority of new originations, he noted.

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Also, new non-agency securitization volumes are negligible, while GSE credit risk transfers are only beginning to ramp up.

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“At some point, there's going to be greater reliance on private capital,” Kain said, and he and his team believe it's going to provide significant opportunity in the mREIT space in the intermediate to longer term in the agency, non-agency, and MSR sectors.