NAR received a letter from the FHFA in response to NAR's letter send to the Treasury, Federal Reserve Board, and FHFA on March 27th requesting their support to improve liquidity in the mortgage market. A group of nearly 30 brokerages with affiliated lending groups also sent a letter to the FHFA on April 7th.
The FHFA's letter makes a number of points:
- FHFA took action to extend forbearance,
- FHFA took action to quell secondary market dealer problems,
- The FHFA argues that only the Fed has the ability to create a liquidity facility
- Highlights stability problems with non-bank servicers and cites efforts by the FHFA's to ameliorate these issues, and regulator "counter parties" like the non-bank servicers
Subsequent to NAR's letter on March 27th, the FHFA took actions to allow lenders to sell loans in forbearance to the GSEs and capped the number of months of advances that servicers are responsible for. While the FHFA has taken actions, liquidity issues remain and are resulting in overlays on consumers, hurting home sales.