Alterra Mortgage President Miguel Narvaez: “And what happens is that no one wants to take the risk of doing loans that FHA will not insure.”

Loans in the $351.5 million MBS have seasoned for an average of five months and 24% are in forbearance.

The three agencies reported a total of 1.2 million single-family loans one payment past due, or 3.03% of their combined portfolio. Ginnie’s 4.78% 30-day delinquency rate was the highest, including a 5.68% rate for FHA loans.

“The problem,” said Dave Worrall, president of LoanCare, Virginia Beach, VA, “is that servicing buyers aren’t hitting the bid.” This, in turn, forces the actual originator of the loan to keep MSRs.

Black Knight reported: “At today’s level, mortgage servicers need to advance a combined $3.5 billion a month to holders of government-backed mortgage securities on COVID-19-related forbearances."

So far, the industry response has been positive, with a thumbs up coming from CMLA...

According to the offering circular, the seller is a “well capitalized institution” based in California.

Self-employed borrowers had the worst performance, on average, followed by loans for investment properties...

An island in the COVID-19 storm; Mortgage banking...