Over the last couple of weeks, the Federal Reserve has slowly tapered its MBS purchases. But even with healthy MBS prices, mortgage rates remain higher than formula dictates.

An FHFA spokesperson said that, while Director Mark Calabria hasn’t issued a specific directive on providing credit, he has made it very clear that Fannie and Freddie must prioritize their own safety and soundness.

Analysts estimate that GSE forbearance programs will ultimately cost servicers between $80 billion and $150 billion in advances and escrow payments, bolstering the theory that only the Federal Reserve has the wherewithal to provide interim financing.

Former Freddie Mae CEO Don Layton suggests short- and long-term solutions for the liquidity problems faced by nonbank mortgage servicers.

Milbank has won a one-year, $3 million contract from the FHFA to provide legal services related to ending the conservatorships.

If the coronavirus crisis goes on for more than six to eight weeks, FHFA Director Mark Calabria sees mortgage servicers under “a lot of stress.”

The Federal Housing Finance Agency this week temporarily allowed Fannie and Freddie to finance mortgage-backed securities.

One of the early casualties of the coronavirus outbreak is the much-anticipated, re-proposed capital rule for Fannie Mae and Freddie Mac.

Fannie and Freddie are providing “alternative flexibilities” to reduce the need for appraisers to inspect the interior of a home.

Federal Reserve operations this week swallowed up more than $39.8 billion in agency MBS, including about $31.7 billion in uniform MBS.