The federal entities appear to have accommodated many of the concerns of small and mid-sized seller/servicers, reducing some requirements and eliminating others.

With FHA loan performance relatively strong and the spike in interest rates this year, early buyout activity from Ginnie MBS is limited. Overall, removals are slowing thanks to elevated interest rates. (Includes data chart.)

The REIT has built up strong residential and MSR businesses to diversify risk and support its agency prowess. And while it’s held back on increasing leverage, once volatility declines, all that may change.

For now, the market is well served by two to four master servicers. But if any of them exit the market, servicing costs and transaction fees could increase.

Loan repurchases from Ginnie MBS in the first quarter of 2022 neared pre-pandemic levels as delinquency rates declined. Loan removal trends vary among the top servicers. (Includes two data charts.)

Issuance of non-agency MBS with deals backed by mortgages bought out from Ginnie Mae MBS has increased in recent months. Once they’re reperforming, those loans can be re-delivered to Ginnie.

The Federal Housing Finance Agency plans to implement tiered financial requirements for nonbank servicers and set harsher treatment for Ginnie servicing than what’s currently required for GSE seller/servicers.

Loan payoffs through refinancing and the like declined during the fourth quarter while buyouts plummeted. On an annual basis, loan removals were largely flat. (Includes data chart.)

The new documentation process eliminates the need for recordation and title insurance, with certain exceptions, for servicers participating in FHA’s COVID-19-related advanced loan-modification program.

A Florida-based investor is touting the profits available from commercial MBS with distressed malls. The trade runs counter to the “mall shorts” that helped generate massive returns for some investors last year.