The company reported nearly $23 million in losses for the second quarter, but that was an improvement on a quarter-to-quarter basis.

Insurance claims and claims expenses were 503% above 1Q and 1,075% over 2Q19.

The delinquent loan inventory more than doubled compared with the prior year.

The year-over-year increase came as homebuying picked up and the company's mortgage lending business boomed.

The company's servicing segment recorded a pretax loss of $251 million over the period.

Even with the second quarter's market disruption, Redwood Trust still regained profitability.

Fannie, Freddie also announced they'll face banklike liquidity standards starting Sept. 1.

While low interest rates drove up new insurance written, the increased defaults stymied overall performance.

The government-sponsored enterprise's earnings were up tenfold as it stabilized mortgage market liquidity amid the coronavirus.

The government-sponsored enterprise reported net earnings of $2.55 billion, up from $461 million in the first quarter.