Mnuchin said he’s asked the task force members to give him recommendations by March 30 on how the U.S. can address a potential cash crunch for servicers, who collect money from borrowers monthly and facilitate payments to investors in mortgage bonds.
He made the remarks during a Thursday call with members of the
Mortgage servicers face potential stress because the FHFA and lawmakers are granting forbearance -- a widespread payment holiday -- for property owners who can demonstrate financial hardship due to the virus.
Calabria said Wednesday that a lot of mortgage servicers could find themselves at risk of collapse if the coronavirus pandemic lasts for more than two months.
To contact the reporter on this story:
To contact the editors responsible for this story:
© 2020 Bloomberg L.P. All rights reserved. Used with permission.