The loan, structured by Canyon Partners with participation from credit funds managed by affiliates of Fortress Investment Group, essentially doubled the amount of cash New Residential has on its balance sheet.

The FHFA's optimism is based on quarterly income, financial, and balance sheet statements that Fannie and Freddie receive from 346 MBS servicers...

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.”

According to figures compiled by Black Knight, 4.7 million homeowners are in forbearance plans...

KBW believes the Freddie announcement could improve valuations for mortgage servicing rights “as the market reduces its expectations for potential servicing advance costs.” 

For starters, FHA doesn’t have LLPAs in its toolbox. Then what?

Even more noteworthy: First Republic hasn’t issued any non-agency securities since the market meltdown of 2008.

Combined, the two companies would have $310.5 billion of MSRs, ranking 10th overall, according to Inside Mortgage Finance.

The new policy applies to borrowers who can afford to resume making their regular monthly mortgage payments, but are unable to cover the remittances they missed during forbearance...

The result: The buildup of payoff funds dramatically reduces the P&I advance requirement...