On the servicing front the news was grim. Wells revealed that its massive residential servicing portfolio declined in value by 29.4% from the prior period: $8.13 billion at March 31 compared to $11.52 billion at yearend.

Ocwen said it received written notification on the violation from the NYSE on April 8.

The Ginnie Mae portion is $130 billion: Forbearance requests on 5.89% of $2.2 trillion worth of FHA/VA loans that back GNMA MBS.

In a nutshell, depository institutions managed to increase their sales of refinance loans sequentially while IMBs saw a drop...

In an industry update, Keefe, Bruyette & Woods predicts it may still take some time before the establishment of an emergency funding facility for residential servicers with MBS payments coming due.

One of the goals: to assist nonbanks so they are not declared in technical default, an event that would trigger financing covenants they have with their warehouse lenders.

Scott Olson, executive director of the Community Home Lenders Association: "This is a period of deep uncertainty for IMBs. Those that service [loans] are getting hit with huge unexpected liquidity demands regarding advances."

“This is a sea change,” said Steve Harris, president of MIAC Analytics, New York. “It’s going to get really ugly from here – and I know ugly.”

FHA forbearance is expected to swell in the weeks and months ahead...

But will the central bank act decisively? “Powell’s remarks were encouraging,” one veteran industry lobbyist noted.