Freddie told homeowners that, in addition to the traditional disaster relief options provided by the GSEs, they may be eligible for relief through COVID-related forbearance programs.

The council said any distress that affects the secondary mortgage market activities of the GSEs “could pose a risk to financial stability if those risks are not properly mitigated.”

When questioned about the steep fee the GSEs charge to buy early forbear-ance loans, the FHFA director turned the tables on the lawmakers: Why didn’t Congress pay for it in the CARES Act?

FHFA officers told the inspector general that they believed performing some of the required security assessments “was an inefficient use of agency resources.”

The Structured Finance Association said it is concerned FHFA believes that, if the GSEs have capital levels similar to banks, the need for an explicit guarantee will be eliminated.

Nonprofit groups said the new rule will lead to higher guarantee fees, potentially pricing many low-income families and families of color out of the GSE channel.

The move indicates that investors holding certain Fannie Mae and Freddie Mac credit-risk transfers can expect losses.

Homeowners affected by natural disasters can often suspend their payments for up to 12 months without incurring any late fees.

According to the CFPB’s own estimate, as many as 957,000 loans would be affected by the expiration of the patch.

Still, Rep. Maxine Waters (D-CA), chair of the House Financial Services Committee, urged the Federal Housing Finance Agency to kill the LLPA outright.