The six-month tally would be at least $45 billion. The calculations from the research firm take into account prepayment cash flows buffering principal and interest advance requirements.
At March 31, Mr. Cooper serviced $629 billion worth of home mortgages, including $129 billion of Fannie Mae/Freddie Mac product and $108 billion of Ginnie Mae loans. However, roughly half its portfolio, $317 billion, is represented by subservicing contracts.
Apparently, it’s not Ginnie Mae MBS payments that are keeping the 15 up at night, but remittances on Fannie Mae and Freddie Mac single and multifamily securities. Private-label products also pose a concern.
Anne Canfield of Michael Best Strategies: “This is a major issue. I can honestly tell you that nonbank mortgage servicers will not make it past early May. They will be out of business”…
According to figures compiled by Inside FHA/VA Lending, seven of the 10 largest Ginnie Mae servicers are nonbanks. At yearend, these seven had a combined $894.2 billion in MSRs backed by mostly FHA/VA loans...