- Ginnie Mae last night promised to use a program normally reserved for natural disasters to get cash to mortgage servicers.
- With unemployment soaring and the new stimulus bill allowing some folks to get up to 12 months of forbearance, servicers are bracing for a massive wave of of delinquencies. And servicers are on the hook to get money to mortgage investors whether or not individuals make their mortgage payments.
- Ginnie Mae says it will have the operation up and running in two weeks.
- Not Fannie Mae or Freddie Mac, Ginnie Mae-insured mortgages tend to have a higher risk profile, and thus are more likely to require some sort of forbearance.
- Interested parties include: Mr. Cooper (NASDAQ:COOP), Ocwen (NYSE:OCN), New Residential (NYSE:NRZ), PennyMac Financial (NYSE:PFSI)