27 New Democrats Call for Mortgage Servicer Liquidity Facility
article by Structured Finance Association
On April 23, Representative Denny Heck (D-WA, 10) led a joint letter to the heads of multiple federal agencies including, Treasury Secretary Steve Mnuchin, Federal Reserve Chairman Jerome Powell, and Federal Housing Finance Agency Director Mark Calabria, urging the federal government to create a liquidity facility that servicers can draw upon to access the cash they need to make their required advances. Members wrote: “We saw in 2008 how failures of mortgage servicers created significant stress on the financial system. Financial stress among mortgage servicers also caused unnecessary foreclosures. There is no reason to risk either of these happening again, especially given the federal government’s good early steps to help homeowners.” The letter went on to state the facility should be available for federally-backed and PLS loans, but that servicers should be required to offer uniform forbearance and modification options as a precondition to accessing the facility.
SFA will continue to advocate for the creation of a liquidity facility for mortgage servicers and keep its members informed of any developments.
Read the letter here.