MBA Mortgage Action Alliance ‘Call to Action’ Urges Governors to Prioritize Mortgage Relief Efforts

The Mortgage Action Alliance, the grassroots advocacy arm of the Mortgage Bankers Association, issued a “Call to Action” yesterday, asking its members to contact their state governors and urge them to prioritize mortgage and rental assistance for those in greatest need.

MBA Senior Vice President of Legislative and Political Affairs Bill Killmer said as the CARES Act—the $2 trillion stimulus package passed in March—goes into effect, MBA and its members must ensure that assistance goes to those who need it most.

“We know the dedication you feel to your customers, your communities and the industry you’ve chosen to make your life’s work,” Killmer said. “And we’re just as passionate about defending and promoting the good work all of you do. While we fully support these borrower relief efforts, the industry needs to send a strong, collective and clear message that mortgage and rental assistance should be prioritized for those most impacted by the crisis, especially prior to the full development and deployment of a liquidity facility that supports our mortgage servicing sector in the wake of the unprecedented and nationwide scale of forbearance that we anticipate. Forbearance is not forgiveness and the available resources to help those most in need are finite.”

MBA led a broad coalition of organizations representing financial services and affordable housing advocates in releasing a statement calling on Treasury, FHFA and the Fed to work now to stand up a liquidity facility to help mortgage servicers provide the widespread forbearance called for by the GSEs, FHA and under the CARES Act.

In a major victory for the industry via MBA’s advocacy efforts, Ginnie Mae also provided notice of its intention to establish a liquidity facility to support servicers in a period of widespread borrower forbearance due to the effects of COVID-19.

“At MBA, we are focused on implementation and our priorities include continuing to work with the U.S. Treasury Department and the Federal Reserve to establish a liquidity facility for any residential and commercial/multifamily servicer who will need assistance in the face of the massive volume of forbearance plans resulting from the economic disruption caused by the COVID-19 pandemic as quickly as possible,” Killmer said.

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