The gap between when prepayment proceeds are received and when the funds must be transferred to agencies provides an opportunity for servicers to use the funds for forbearance-related advance payments.
While the top two servicers reported a $50.6 billion decline in their combined portfolio during the first quarter, a handful of nonbanks saw significant growth from the end of 2019. (Includes two data charts.)
The economic damage caused by the pandemic took a bite out of Freddie’s first-quarter results. More trouble lies ahead, including forced MSR transfers.
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