ABA joined several financial and mortgage industry trade associations in a letter to the Federal Reserve, HUD, FHFA, the CFPB, the U.S. Treasury Department and the White House today to provide the industry’s view on responding to the many challenges COVID-19 poses to the mortgage markets and to borrowers.
The groups emphasized the importance of producing a single model forbearance program that produces the same outcomes for consumers across lending programs. They also called for additional universal program guidance from the government-sponsored enterprises and government agencies and highlighted the need to waive certain policies and practices that may add unnecessary delays and friction to forbearances and loan modifications.
“The mortgage industry is committed to ensuring that households in need receive help immediately through payment forbearance that could extend from ninety days to twelve month,” the groups said. “This assistance would be followed by an appropriate loan modification, with programs that allow consumers to simply resume their previous mortgage payments, without additional costs or penalties, as the first and best option for most, but complemented by programs that can provide more substantial payment relief through changes to the rate and term of the mortgages, as necessary, also without additional costs or penalties.”