A broad group of those involved
in the mortgage industry over the weekend called on the FHFA, the Fed,
and Treasury to put in place a liquidity facility for the mortgage
servicers.
At issue is last month’s hastily put-together
CARES ACT which codified into law (for federally insured mortgages) a
foreclosure moratorium for up to 60 days, and the ability – without
showing any hardship – to get mortgage forbearance for up to one year.
These requests are coming through – and being granted – at an alarming
rate.
It all sounds wonderful, but the burden then falls
on mortgage servicers to deliver those goodies, and these players are
in no way set up to handle. They are, after all, responsible for getting
money to mortgage investors whether or not folks pay their mortgage.
A “final piece of the puzzle is needed,” they say – a liquidity facility for single-family and multifamily servicers.
Mr. Cooper (NASDAQ:COOP) CEO Jay Bray to CNBC: “There is going to be complete chaos,” unless the Feds fix.
Interested names: New Residential (NYSE:NRZ), PennyMac Financial (NYSE:PFSI), Owen Financial (NYSE:OCN).
https://seekingalpha.com/news/3558527-mortgage-industry-pleads-for-help
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