The joint statement applauds the action by Congress in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide forbearance relief from mortgage loan and rental payments, but also notes that no accommodation was made for servicers who often must advance payments to investors, regardless of whether mortgage payments are made.
“Policymakers rightly chose to respond, but made mortgage servicers responsible for delivering these government-mandated benefits, and the industry is prepared to supply that relief. The established forbearance framework is appropriate, as it gets help to the most people as quickly as possible. But the scale of this forbearance program could not have been foreseen by mortgage servicers, or fully anticipated by regulators.
It is therefore incumbent upon the government to provide the final piece of the puzzle—a liquidity facility for single-family and multifamily servicers—to ensure that the entire industry can deliver much-needed economic relief to consumers through this unprecedented forbearance plan. While some servicers will not need assistance, many others will require temporary support to deliver forbearance at the scale and for the duration required.”
The groups issuing the joint statement are: Independent Community Bankers of America, Leading Builders of America, Local Initiatives Support Corporation, Mortgage Bankers Association, National Apartment Association, National Association of Affordable Housing Lenders, National Association of Home Builders, National Association of REALTORS®, National Council of State Housing Agencies, National Housing Conference, National Multifamily Housing Council, The Real Estate Roundtable, Structured Finance Association, Up for Growth Action, U.S. Mortgage Insurers.
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