Servicers of mortgages held in GNMA securities have several options available when a loan becomes 90+ days delinquent (or is 30+ days delinquent for a 120-day period). 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.

Early buyout (EBO) options exist for loans meeting the above criteria that allow servicers to repurchase non-performing mortgages and cease any further P&I advance obligations to GNMA. Along with a variety of loss mitigation and re-securitization options that are available to servicers that buy out these loans, there is an active market with an increasing number of buyers looking to purchase GNMA EBO product.

PHOENIX is uniquely positioned to assist servicers in identifying the most economically viable execution for their GNMA portfolios as our capabilities and insight reach virtually every corner of the market; this is particularly important for EBOs given the asset’s complex nature. The PHOENIX Analytics Team is equipped to provide real-time valuations for EBO portfolios using industry-leading asset modeling software, along with invaluable servicing insight and trade information from our Mortgage Services and Whole Loan Trading desks. By knowing and understanding the value and risk of EBO along with fundamental market dynamics driving the performance of these assets, PHOENIX can help servicers maximize execution potential across all available channels.

Our active whole loan trading desk provides valuable market insight and trade activity and will work with you to provide a robust deliverable that meets your reporting needs. To learn more about PHOENIX’s Whole Loan Analytics and Valuation Services, enter your name and email below to schedule a meeting with one of our trusted advisors.