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.

Ginnie Mae came to the rescue of a handful of MBS issuers with its PTAP program. Meanwhile, Fannie/Freddie issuers needing cash because of the pandemic have some new options, but will they be used?

The coronavirus economic assistance package is signed, sealed and delivered but concerns remain over the ability of nonbanks to pay MBS holders in the event delinquencies spike over the short term.

A resumption in quantitative easing — at a pace that dwarfs asset purchases during the financial crisis — is just one of several Fed actions to keep credit markets functioning through the coronavirus crisis.

Ginnie Mae said it continues to provide services and is in close communication with issuers, servicers, vendors and trustees.

Federal forbearance on government backed mortgages is a panacea to deal with the economic fall-out caused by the novel coronavirus. But eventually there will be implications in the primary and secondary markets.

Bank of New York Mellon is no longer an approved MBS document custodian for Ginnie Mae.

Issuance of VA cash-out refis with high loan-to-value ratios could drop 50% this year due to pooling restrictions imposed by Ginnie in November. VA’s lower-LTV cash-out tiers are expected to pick up the slack.

While the Trump administration strives to fill leadership positions at HUD, Ginnie Mae continues to function without a permanent president.