ICBA urges liquidity facility for mortgage servicers

ICBA called on administration officials to establish a liquidity facility for mortgage servicers. In a letter to the Treasury Department, Federal Reserve, and Federal Housing Finance Agency, ICBA said forbearance policies could severely strain mortgage servicers.

ICBA noted that servicers remain required to pass principal and interest payments through to the government-sponsored enterprises even for loans that are in forbearance. A liquidity facility to support all mortgage servicers would avoid further economic disruptions and higher concentrations of mortgage servicing in the hands of the largest financial institutions.