Mortgage servicers look to FHFA as forbearance soars

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By Jennifer Kang
14 Apr 2020

The number of mortgage loans in forbearance increased by 37% in the first week of April, with mortgage servicers coming under intense pressure to continue advancing payments to RMBS bondholders. Market participants are hoping the Federal Housing Finance Agency (FHFA) steps in with a fix.

Under the CARES Act, passed on March 25, borrowers are granted forbearance of up to one year on agency mortgages.

While the legislation has provided relief for consumers, mortgage servicers are coming under pressure, as they are still contractually required to advance payments to investors. Servicers take ...

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