Mortgage Servicers Hold Out Hope for Government Liquidity Backstop
Provided by Structured Finance Association
Mortgage servicers remain hopeful that the U.S. government will deliver a liquidity backstop within the next few days. Servicers and other mortgage industry spectators say a federal liquidity facility is on the table to cover missed homeowner payments due to COVID-19, but several obstacles remain before a plan can be rolled out. As the deadline to launch a backstop before May 1 payments nears, Scott Buchta, head of fixed income strategy at Brean Capital, states “I would not be surprised to see some form of liquidity facility introduced as early as this week.”
Read more via American Banker.