After non-agency MBS issuance all but froze in March, issuers are beginning to return to the market. Neuberger Berman issued a non-QM MBS this week and others are working on deals as well.
Delinquencies on mortgages in agency MBS surged in April amid financial difficulties prompted by the coronavirus. Loans were performing well before the pandemic. (Includes data chart.)
Several mortgage borrowers seem to be using the government’s forbearance program as more of an insurance policy, a development that is providing some relief for servicers.
Momentum generated by Velocity Financial ground to a halt in March due to the coronavirus. Income for the first quarter declined 50% and half of the firm's staff was furloughed.
PennyMac Financial Services said margins were helped by reduced competition due to tighter underwriting standards as some firms suspended lending activities altogether...