Some of the $659 billion of loans originated through the Paycheck Protection Program are eligible for sale in the secondary market, but it remains to be seen whether the loans will make it into ABS.

A loan-level pricing adjustment payment grid is expected shortly from FHA. The charges could have a profound impact on the Ginnie Mae market.

Democratic lawmakers have urged federal entities to take steps to help servicers. Meanwhile, CFPB issued best practices for MSR transfers.

Servicers of loans in auto ABS increased their use of loan extensions in March to help borrowers struggling to make payments.

Rating services anticipate the sharp rise in the unemployment rate brought on by the pandemic will damage borrowers’ ability to repay loans.

Ginnie Mae came to the rescue of a handful of MBS issuers with its PTAP program. Meanwhile, Fannie/Freddie issuers needing cash because of the pandemic have some new options, but will they be used?

Some credit-risk transfer deals explicitly exempt forbearance losses due to natural disasters. Freddie Mac clarified that it considers the coronavirus a natural disaster. Fannie Mae has yet to provide guidance.

The bulk of non-agency MBS currently being issued is backed by seasoned mortgages. Rating services are also adjusting criteria to account for the coronavirus.

Auto ABS offerings returning to the market are being met with strong demand from investors, prompting deal sizes to be increased.

The coronavirus-triggered lockdown has prompted rating agencies to increase loss expectations for newly issued auto ABS.