When it comes to pandemic-related bailouts, the Fed is running the table. But the mortgage industry would like to hear something concrete on servicer liquidity.
Analysts at Bank of America Securities predict just $3.4 billion of prime jumbo and non-QM MBS will be issued for the rest of 2020. Non-agency MBS issuance came to a near standstill in March. (Includes three data charts.)
Velocity Financial raised capital by selling stock after plans to issue MBS were disrupted by volatility from the coronavirus. Several REITs also provided updates on their financials.
The federal government is marshaling all its resources to help nonbanks with MBS obligations stay liquid. For now, the effort appears to be working but new brush fires are popping up.
The secondary market for orphaned non-QM assets is thriving. This includes both whole loans and even securitizations. The biggest question for buyers: Has a floor been established yet?
Mortgage-related real estate investment trusts, including Redwood, have been hit hard by a wave of margin calls due to drastic declines in the value of their MBS. Redwood said it has met its margin calls so far.