Mortgage Servicers in Good Shape to Avoid Bailout, Calabria Says

Fannie Mae and Freddie Mac’s regulator struck an optimistic tone Tuesday, saying that based on current loan forbearance rates, non-bank mortgage servicers stand a chance of getting through the coronavirus crisis without a U.S. bailout.

Federal Housing Finance Director Mark Calabria cited data showing that roughly 6% of borrowers with loans backed by Fannie and Freddie have postponed making payments. That level of forbearance translates into servicers needing to advance about $500 million each month to bond investors, a total Calabria said the firms can handle given that they are only obligated to make such payments for four months. ...