With the passage of the CARES Act, homeowners with federally backed mortgages who are experiencing financial troubles due to the novel coronavirus crisis are can request a forbearance on their loans. That will allow those borrowers to pause their mortgage payments for up to 180 days.

This has caused the market value of mortgage servicing rights (MSRs) to collapse, as the government has decided to not provide a credit line to servicers, which will still face huge cash commitments. What does that mean for large non-bank mortgage servicers?

PennyMac Financial Services (NYSE:PFSI) is one of the top non-bank mortgage originators in the U.S. It originates loans and sells a large share of them to its sister REIT, PennyMac Mortgage Investment Trust. PennyMac Financial Services retains the

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