With volatility and instability rising in the economy, mortgage firms are facing added stress. Treasury Secretary Steven Mnuchin has brought together a task force to help ease the pressures that mortgage firms are facing in terms of liquidity shortfalls.
"He has asked the task force to offer recommendations by March 30. Mnuchin chairs the panel, which also includes the Federal Reserve and Securities and Exchange Commission," according to GlobeSt.
"The Mortgage Bankers Association estimates that if 25% of borrowers ask to postpone their payments for six months, it could cost more than $75 billion."
This could spark a new discussion in creating a facility that is dedicated to bringing aid to mortgage and financial real estate companies. This is especially critical as the Federal Housing Finance Agency revealed it would not allow Freddie Mac and Fannie Mae to create funding that would assist mortgage servicers in such a dire time.
To learn more about the task force, click here.