The volatility of rates is unprecedented.
The unemployment rate is unprecedented.

All of this means 2 things.

Most importantly, investors don’t want MBS. EVERYONE is afraid of defaults. Look at the yields on those bad boys.

2.)
Demand for regular houses will decrease.

Both, particularly, #1 is very bad for the industry. Rates are low and lenders are originating as much as they ever had with the refinance boom (strain on cash)

Margin calls (strain on cash)

Investors aren’t buying MBS in this market (strain on cash for lenders because the investors aren’t buying their mortgages for a lot if at all.

Banks aren’t increasing credit lines to lenders as a lot of the banks money is being tied up in advances on the properties who are defaulting.

Many poorly financed lenders will collapse. Write it down. Take it to the bank.