The loanDepot CEO said “almost all” of the lender/servicer’s 6,700 workers are healthy and working from home.” He noted: “This week we experienced one of our highest levels of new originations and fundings in our company’s 10 year history”…
Loan officers working on the front lines point to a slew of mortgage “overlays” and loan-level price adjustments being mandated by correspondent aggregators and wholesale funders.
Keefe, Bruyette & Woods said the dividend cut is in line with expectations. "However, we think investor focus remains on the company's ability to finance its non-agency MBS."
Within two weeks, the government guarantor will roll out a Pass-Through Assistance Program (PTAP) whereby issuers with a principal and interest shortfall may request that Ginnie advance the difference between available funds and the scheduled payment to investors.
Lenders and servicers alike are facing huge challenges due to the coronavirus, with many rising to the operational challenge. However, when it comes to MSR sales, the picture is bleak.
One industry representative noted: “While it is still an outdated fax-based system, it is the most trustworthy in terms of verifying a mortgage applicant’s income information and prevents fraud.”
“I haven’t been doing any deals, but I’ve been on the phone with clients a lot,” said one veteran servicing broker. “You might say they’ve been hyperventilating.”
Mortgage REITs came back from the brink this week, but the sector is not out of the woods quite yet. Thanks to the coronavirus, financial uncertainty remains the watchword.