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.

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.

The IVES system, which many criticize as being antiquated, functions by way of a fax machine...

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.”

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

However, dark clouds are on the horizon for rate-and-term deals: Refinance applications dropped 19%, reversing a 25% increase the week before.

Among the two largest firms that originate jumbo mortgages through correspondents, Chase is still active while Wells Fargo is on hiatus...