During a House committee roundtable, the Mortgage Bankers Association requested Congress for a funding facility for servicers and legislation to help lenders with mortgages that entered forbearance soon after closing.
Mortgage servicers and credit unions are worried that if a new California forbearance bill becomes law their bottom lines will be significantly impacted. The bill would greatly extend the forbearance period.
The Consumer Financial Protection Bureau issued a no-action letter template for mortgage servicers to use when digitizing their loss-mitigation process.
Delinquencies on mortgages in agency MBS surged in April amid financial difficulties prompted by the coronavirus. Loans were performing well before the pandemic. (Includes data chart.)
FHA is sympathetic to the plight of its lenders during the coronavirus crisis but how far will it go on forbearance for loans in progress? No one knows, at least not yet.
Several mortgage borrowers seem to be using the government’s forbearance program as more of an insurance policy, a development that is providing some relief for servicers.
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