A COVID-19 infection in the Dallas office of document custodian BNY Mellon is causing MBS transactions to backup.

In his semiannual report to Congress on Tuesday, Fed Chair Jerome Powell described the MBS market as "vital to the flow of credit in the economy."

Repurchases of delinquent loans from Ginnie MBS pools jumped sharply in May, including a significant number of performing loans under COVID-19 forbearance plans. (Includes data chart.)

Instead of larger, multi-issuer uniform MBS pools, FHFA wants seller/servicers to closely monitor the prepayment speeds of their broker/correspondent channels to ensure closer alignment of Fannie/Freddie pools.

There’s a growing fear that Ginnie Mae buyouts may soon spike as nonbanks join the “party” to protect themselves.

With Ginnie Mae forbearance requests now at 13% of outstandings, FHA has introduced a “temporary” policy to cover loans in progress.

Nonbank Ginnie Mae issuers increased their borrowings under the PTAP program in May but not significantly. Next up: FHA’s forbearance policy on loans in progress.

The new FHFA-sponsored capital rule is finally here. But how long will it take for Fannie and Freddie to meet the standard before they can be released from conservatorship prison?

Ginnie Mae is keeping a close eye on the COVID-19 forbearance readings. The wild card: the FHA’s stance on loans in progress.

Will the FHA hike premiums as a way to allay forbearance risk on Ginnie Mae-backed loans? Probably not, but it’s an option.