Fed survey shows GSE credit terms mostly unchanged in 3Q
Terms for funding agency residential mortgage-backed securities remained mostly unchanged over the course of the past three months, according to the latest Federal Reserve survey of senior credit officers. Only 5.3% of respondents saw terms tighten in the past three months. Meanwhile, 78.9% said funding terms for RMBS remained somewhat consistent. Only 3% said funding on agency RMBS eased during the quarter. When asked about demand from clients to fund agency RMBS, 31.6% of credit officers noted a slight uptick. About 57.9% said demand remained mostly unchanged, while 5.3% noticed a considerable increase. Just more than 5% said demand declined slightly. When asked how liquidity and functioning in the agency RMBS market has changed in the past three months, 68.4% said it remained unchanged and the other 31.6% said liquidity deteriorated somewhat. Meanwhile, terms on funding for non-agency RMBS also remained mostly unchanged, according to 80% of the survey's respondents. About 13.3% said terms tightened somewhat, while 6.7% said terms eased somewhat. Write to Kerri Panchuk.