A new shoe has dropped in the nonbank liquidity saga: Warehouse credit. JPMorgan Chase, the largest player in the sector, is cutting back.

Industry analysts suggest lenders sell loans quickly and use best-efforts pricing options to offset volatility caused by the coronavirus crisis.

Lenders and servicers alike are facing huge challenges due to the coronavirus, with many rising to the operational challenge. However, when it comes to MSR sales, the picture is bleak.

Despite a modest gain in production volume, income from originations and secondary market fell from the third to the fourth quarter. But higher interest rates stabilized performance on the servicing side of the business. (Includes data chart.)

Mortgage REITs came back from the brink this week, but the sector is not out of the woods quite yet. Thanks to the coronavirus, financial uncertainty remains the watchword.

Thanks to rates falling to new lows last week, the asset value of servicing portfolios is in question. In short, margin calls are expected.

Although secondary market sales by bank mortgage banking platforms were down 8% in the fourth quarter, it still ranked as one of the busiest periods since early 2013. (Includes two data charts.)

Top-ranked servicer Ocwen Financial is trying to put its problems in the rear view mirror. But a new problem has arrived on its doorstep: Ultra low rates (again), courtesy of the coronavirus.

Mr. Cooper, the nation’s third largest residential servicer, reported strong earnings for the fourth quarter, aided by deferred tax assets and a mark-to-market gain.

BlackRock transferred $589 million of stock in PennyMac Financial Services, accounting for a 20% stake in the lender, to two of its affiliated charitable entities. BlackRock initially invested $34 million in PennyMac in 2008.