One warehouse executive who competes against the bank in question noted: “There’s panic among their customers.”

The good news is that several large nonbanks (PennyMac Financial Services comes to mind) hedge their MSR positions. But others do not.

And since nonbanks account for eight of the 10 largest Ginnie Mae servicers, there’s a concern about their liquidity.

The biggest risk for the purchase-mortgage market: an unemployment rate that could shoot into the stratosphere.

Markets eventually recover. Getting there is the hard part...

A cold hard reality for lenders and real estate agents: most people cannot buy a home if they’ve been laid off...