Mortgage bankers have been clamoring for liquidity help from the FHFA. This week, the agency delivered on the issue of the GSEs buying COVID-19-related forbearance loans, but then lenders read the fine print.

Regulators have acknowledged that the lack of legal clarity and the speedy implementation of the new forbearance requirements may set the stage for exploitation by unscrupulous or ill-informed servicers.

Temporary prohibitions imposed by Pennsylvania could shutdown mortgage originations, the MBA warned. Meanwhile, the trade group noted that servicing standards set by Washington, DC, differ from federal ones.

S&P bumps its outlook to negative on three nonbanks, while maintaining a stable rating on two others. Some are key players in GNMAs.

House Republicans are pushing Federal Reserve and Treasury to create a liquidity facility for mortgage servicers struggling to fund advances.

According to independent mortgage bankers, aggregators are adding credit overlays and refusing to buy loans in response to post-closing forbearance risk.

The megabanks saw their first-quarter mortgage results get whipsawed by the coronavirus. Home lending was down and MSR marks were up.

A lack of consistent post-forbearance options may pose additional risks for the industry, particularly for loans owned by Fannie and Freddie.

Fair lending risks exist in servicers' handling of forbearance requests if certain protected classes are found to be disadvantaged.

Banks have received two-year relief from the full impact of the new current expected credit losses accounting standard as they cope with broader impact of the coronavirus. Nonbanks are seeking similar relief.