Call to Action - FHFA Industry Issues with GSE's - Massachusetts Mortgage Bankers Association

Call to Action - FHFA Industry Issues with GSE's

The mission of Fannie Mae and Freddie Mac should be more than just words on their website. They need to take responsibility and help consumers, mortgage lenders and servicers NOW.

As we get further along in this COVID-19 pandemic, we have reached the stage where we need to have our voices heard regarding issues that we are experiencing and the lack of support by FHFA, Fannie Mae and Freddie Mac. Today the MMBA is releasing letters to ALL Massachusetts federal Senators, Representatives, FHFA and the media. In the words of Twisted Sister, "We're Not Gonna Take It". We are asking you to get involved as well!

Who is your representative in Congress? Click here

Click here for letter to the FHFA
Click here for Senator Warren Letter
Click here for Senator Markey letter
Click here for Representative Richard Neal letter
Click here for Representative Jim McGovern letter
Click here for Representative Lori Trahan letter
Click here for Representative Joseph Kennedy letter
Click here for Representative Katherine Clark letter
Click here for Representative Seth Moulton letter
Click here for Representative Ayanna Pressley letter
Click here for Representative Bill Keating letter
Click here for Representative Stephen Lynch letter
Click here for a word document that you can edit
 
What can you do? How do you do it? JOIN OUR VOICE!
  • Forward our FHFA letter to your Account Representatives at Fannie and Freddie - asking him/her to pass this along to their leadership and express your frustration as well.  
  • Write, email or call your Senators and Representative!
  • Write, email or call your local newspaper and tell your story. 

What are our issues?  

Interior appraisal inspection relief:
Our hope was that appraisers and homeowners would not be forced to have in-person contact in order to refinance their homes for a lower rate, lower terms or whatever the reason was to refinance their home. Instead appraisers are unable to use technology for obtaining interior inspections and the GSE's didn't expand the use of desktop appraisals or exterior refinances for ALL refinances.  Here is what we are asking for:
  • Expand the use of a desktop appraisal or an exterior-only appraisal for all refinances and/or allow appraisers to use technology for obtaining interior inspections in alternative ways.
Failure to Purchase Closed Loans:
Somewhere along the post-closing process, even after the loan has been sold, if a borrower has a change of circumstances due to COVID-19, Fannie Mae and Freddie Mac will refuse to purchase a loan if a borrower has applied for a forbearance. Here is what we are asking for: 
  • Honor purchase commitment for mortgages for consumers experiencing COVID-19 financial distress after loan closing who have applied for a forbearance.
Additional Liquidity Needed:
One consequence of widespread borrower forbearance on a national scale to help both homeowners and renters is a severe liquidity shortage that will befall the housing finance system. This liquidity shortage will most acutely affect mortgage servicers, who are contractually bound to continue to advance monthly payments to investors, insurers, and taxing authorities, regardless of whether the borrower actually made those payments and those who hold mortgage servicing rights as collateral to enable mortgage lending. 
  • Support the Federal Reserve using its authority under Section 13(3) of the Federal Reserve Act to provide liquidity for the residential and commercial mortgage servicing sector.
The mission of Fannie Mae and Freddie Mac should be more than just words on their website. They need to take responsibility and help consumers, mortgage lenders and servicers NOW.
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