Losses loom for the CRT investor as the 180-day forbearance period on millions of mortgages comes to an end.

Nomura analyst Matthew Howlett says PennyMac's strong performance is a sign of boom times for mortgage lenders. He expects four or five IPOs of nonbank originators in the next nine to 12 months.

Uncertainty regarding the performance of mortgages underlying its CRT in-vestments prompted PMT to boost the discount rate on its loans from just 5% at the end of the fourth quarter to about 11% as of March 31.

One mortgage REIT is already feeling the effects of the GSEs’ move to unwind an obscure credit-risk transfer program by yearend.