GSE's

Groups Express Deep Concern Over Mortgage Forbearance’s Being Sold to GSEs

Groups issued a letter to the U.S. Department of Housing and Urban Development and Federal Housing Finance Agency expressing deep concern over recent policy changes regarding the treatment of mortgages that have closed but entered forbearance prior to being sold to the Government Sponsored Enterprises or insured by the Federal Housing Administration (FHA). These changes will further reduce access to credit for borrowers of color and those living in communities hardest hit by the coronavirus, thereby having a deleterious pro-cyclical effect rather than playing the critical countercyclical role that these government-backed institutions played in the last crisis. They also have the potential to significantly affect both the cost and availability of financing of multifamily mortgage financing, which could reduce affordability in the rental market as well.