Unrivaled Expertise

GNMA EBO trading is a cornerstone of strategic, effective servicing portfolio management for loans experiencing 90+ day delinquencies. HUD guidelines require servicers to remit scheduled P&I payments until a given loan prepays or is bought out of its respective GNMA pool, thus creating significant advance obligations for servicers of delinquent GNMA loans. By buying out these delinquent loans from GNMA pools and transferring them to specialized buyers and servicers, sellers can realize significant operational and economic benefits. With billions of dollars of EBO transactions completed in recent years, PHOENIX stands at the forefront, offering unrivaled expertise in navigating this complex landscape.

Benefits of EBO Trading

Reduction of SDQ Loans

EBO transactions effectively mitigate the risks associated with seriously delinquent loans, thereby enhancing the overall health and performance of servicing portfolios as well as maintaining acceptable GNMA delinquency rates

Termination of Advances

By terminating principal and interest advances to bond holders, sellers can alleviate financial burdens and improve liquidity.

Recovery of Advances

Sellers typically recoup all recoverable advances already made from the new buyer, minimizing losses and returning capital which can be reinvested at better returns.

Evaluating & Pricing EBO Eligible Loans

Evaluating an EBO portfolio requires a comprehensive assessment of potential outcomes, considering factors such as natural re-performance, permanent modification, foreclosure, and other time consuming loss mitigation scenarios. The product type (FHA/VA/USDA) also plays a crucial role in determining the value of each loan, as it determines the level of insurance or guaranty provided to the servicer. PHOENIX excels in providing EBO mark-to-market valuations and pricing services, leveraging our deep understanding of MSR and whole loan portfolio performance trends, and current market dynamics.


Our dedicated EBO team goes beyond the transaction, offering transparent and customized reporting to provide you with actionable insights and assurance. We specialize in comprehensive oversight and verification, ensuring adherence to GNMA guidance and regulatory guidelines from HUD, USDA, and VA. Key features of PHOENIX’s EBO Oversight capabilities include:

  • Transparent Customized Reporting
  • Risk Identification & Mitigation
  • Surveillance & Compliance
  • Loan-Level Verification
  • Full-File Reviews
  • Coverage Across Servicing Aspects
  • Loss Analysis Expertise

By identifying and minimizing risks, ongoing potential risks, and curtailments, our EBO oversight ensures that you, as a servicer or sub-servicer, can operate with confidence and efficiency.

Contact us today to schedule a consultation and explore how PHOENIX can optimize your GNMA portfolio through strategic EBO solutions