SFA Responds To Calabria Statement That GSEs May Retract Servicing From Struggling Firms

FHFA director Mark Calabria told HousingWire this week that there would be no liquidity facility coming to help servicers struggling from the rise in forbearance due to the coronavirus. Calabria said they have a plan to address the concerns, but it is not the plan the industry is anticipating. Instead of setting up a liquidity facility, GSEs may pull servicing from companies struggling with advances.

SFA responded to these comments, with CEO Michael Bright saying, “Recent comments by the FHFA, coupled with a lack of clarity from the Federal Reserve on whether it will use its 13(3) authority to facilitate principal and interest advances for forbearance, has created a very precarious situation for our nation’s housing market.”

Read SFA’s response.