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%.

Citadel has contributed non-QMs to MBS issued by other firms while never issuing its own security. Meanwhile, an MBS from MFA Financial with loans from Citadel is on hold.

FHFA Director Mark Calabria: “Homeowners who are in COVID-19 forbearance but continue to make their mortgage payment will not be penalized. Today’s action allows homeowners to access record low mortgage rates and keeps the mortgage market functioning as efficiently as possible.”

Fannie Mae: “The financial advisor will work closely with the company and the FHFA to consider business and capital structures, market impacts and timing, and available capital raising alternatives, among other items.”

A year ago, IRRRL activity totaled just $1.99 billion. In the first three months of 2020, it rocketed to $42.01 billion.