The FHFA finally announces a solution for servicer liquidity

In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses the Federal Housing Finance Agency’s move to help mortgage servicers that collect payments on loans backed by Fannie Mae and Freddie Mac. For the last several weeks, the mortgage servicing industry has been crying out for help, lobbying the government to set up a federally backed liquidity facility for servicers to address the rapid rise in forbearance due to the coronavirus. Rather than setting up a liquidity facility, which would help servicers cover the principal and interest payments they are required to send investors on loans that are in forbearance, the FHFA is changing Fannie and Freddie’s policies to limit the number of payments servicers will be required to make.

Following the main story, HousingWire Digital Producer Alcynna Lloyd covers Fannie Mae and Freddie Mac’s decision to delay the mandatory use of the new Uniform Residential Loan Application, a new rule that will allow banks to postpone property appraisals 120 days after a mortgage closes, and a new report from the National Association of Realtors that reveals existing-home sales declined by 8.5% in the month March.

The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.

HousingWire articles covered in this episode:

• Fannie Mae, Freddie Mac will only require servicers to advance 4 months of payments on loans in forbearance
• Coronavirus delays new Uniform Residential Loan Application until March 2021
• Banks can now postpone some appraisals until 120 days after a mortgage closes
• Home sales tumbled in March as pandemic hit