It was a good news/bad news week: Lending profit margins are wonderful right now, but more mortgagors are invoking pandemic-related forbearance.

Jim Parrott: “It seems to me, it would be extremely helpful for them to add non-agency lending as acceptable collateral under these TALF programs, whether at the MBS level or at the loan level."

Bank and thrift holdings of Ginnie Mae MBS rose 5.0% in the first quarter and investment in agency CMOs increased 3.4% from the end of 2019.

“Some companies are higher and some are lower,” said Charbonneau, “but the range has moved up.”

Close to 40% of loans in a planned non-QM MBS from Starwood Non-Agency Lending are subject to COVID-19-related forbearance. The relief rate on a deal from Verus Mortgage Capital is 7%.