MBA Coronavirus Resource Update
MBA President & CEO Issues Member Letter
In a Mar. 23 Member Letter, MBA President & CEO Robert Broeksmit, CMB, provided the following update on industry and economic developments regarding the coronavirus pandemic:
Dear MBA Member:
I hope you and your families are staying safe as our country and our businesses navigate through these uncharted waters. I would like to give you a quick update on a few items in the news that we have been working on.
This morning, the Federal Reserve took the unprecedented step of announcing it would address “strains in the markets” and “continue to purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning.” The statement also declared that the Fed would add agency commercial MBS to its purchases.
This action was consistent with the request MBA made in a letter to the Fed over the weekend. This is indeed a welcome announcement given the lack of liquidity that had been developing in both residential and commercial MBS markets in recent days. I issued this statement a short time ago.
Also this morning, FHFA announced that it was directing Fannie Mae and Freddie Mac to provide temporary flexibilities to satisfy appraisal and employment verification requirements. This action was in direct response to MBA advocacy on these issues with both FHFA and the GSEs and will allow MBA’s members to better serve their customers who want to refinance or purchase a home during these unprecedented times.
Negotiations continue on Capitol Hill on a major economic stimulus package. MBA is actively engaged on a number of items we hope to have included in the package, including the development of a lending facility that servicers can access as they are advancing payments to investors in an environment where more and more borrowers will be on forbearance plans. We are also working with policymakers on a Ginnie Mae program that could serve the same purpose. The final bill will impact our industry in many ways, so we will keep you updated.
The short and simple nature of this note cannot do justice to the vast amount of work MBA staff has been putting in day and night to ensure that our members can continue to do business and serve their customers. I am fortunate to work with such a dedicated team and am extremely proud of the work that we are doing on your behalf.
MBA Staff Working Remotely
MBA offices at 1919 M Street NW in Washington, D.C. remain closed indefinitely. MBA employees are working remotely and have full access to MBA resources to conduct their jobs and assist MBA members with everyday tasks.
About the MBA Coronavirus Resource Center
The MBA Coronavirus Resource Center has been updated and can be accessed at www.mba.org/coronavirusresources.
This Resource Center includes information from health/disease control agencies, recommended business continuity plans, relevant information from financial regulatory agencies, as well as guidance on how companies should communicate with employees, their customers and the public.
MBA recommends members carefully review the updated Interagency Statement on Pandemic Planning issued by the FFIEC agencies in 2007 in response to the outbreak of the avian flu. While this document was developed with banks in mind, MBA believes that it can also be used as a guide for nonbank financial institutions in setting their own policies and procedures.
The Department of Health and Human Services and the Centers for Disease Control and Prevention (CDC) have developed a Business Pandemic Influenza Planning Checklist that identifies important, specific activities businesses can do now to prepare in the event of an outbreak.
MBA encourages its members to work with community planners to integrate their pandemic plans into local and state planning, particularly because the industry’s operations and services are deemed to be an essential part of the nation’s critical infrastructure or key resource.
