CHLA recommends that FHFA only apply the new rules to companies with servicing portfolios exceeding $10 billion.

And therein lies a chief fear for the mortgage industry: as the economic damage caused by the spreading coronavirus piles up, will nonbank Ginnie issuers have enough liquidity to make those payments in the months ahead?

Conventional and government originators are feasting on refinancings that should keep them busy the next three months. After that...

The good news is that several large nonbanks (PennyMac Financial Services comes to mind) hedge their MSR positions. But others do not.

And since nonbanks account for eight of the 10 largest Ginnie Mae servicers, there’s a concern about their liquidity.

The biggest risk for the purchase-mortgage market: an unemployment rate that could shoot into the stratosphere.

Straight talk from Impac CEO George Mangiaracina: “These are extraordinary times with unprecedented interest rate shocks and global market dislocation so any enthusiasm for future prospects should be properly balanced and tempered by potential supply and distribution constraints..."

The the spike in refi activity has “meaningfully” increased the pricing power for originators, said KBW. The research firm said gain-on-sale margins from secondary market loan sales should be exceptionally strong.

Mortgage loan officers should take one last look at their loved ones because if the 30-year fixed-rate vanilla mortgage falls below 3.0% they’ll be living at the office as new customers pour through the door (or Internet) like a zombie apocalypse…

But there’s also a dark side to the rate plunge: The servicing side of the mortgage business is looking at mark-to-market bloodbaths that could be the norm if rates don’t snap back by the end of the current quarter.