Delinquencies in commercial MBS loans are likely to jump due to the economic impact arising from the COVID-19 outbreak, with hotels and malls likely to be the early casualties.
The first quarter is over and financial blood is in the streets. Now comes the hard part: figuring out MSR values that have been slammed by lower rates and (coming) delinquencies. It won’t be pretty.
FHFA Director Mark Calabria: “The lenders I’m talking to have said that 75% to 80% of their calls are from people who are not yet facing hardship. They just want to know what their options are.”
Ditech Financial, the nation’s 10th largest subservicer last time around, disappeared from the ranking because a large chunk of the company’s business, including subservicing assignments, was sold to New Residential Investment Corp.
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