Key Democrats are advocating for more to be done by Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell to help mortgage servicers stay afloat during the heavy wave of missed payments by homeowners.
House Financial Services Chairwoman Maxine Waters and Sherrod Brown, a top Democrat on the Senate Banking Committee, called for the Fed and Treasury to provide liquidity to servicers who are struggling with missed payments.
"Mortgage servicers are expected to face increased strain as millions of homeowners and renters lose jobs, are furloughed, or see reduced hours, all of which will keep them from making mortgage and rent payments, as a result of this public health crisis. We must not allow the pandemic to destabilize critical markets, including our housing market," the lawmakers wrote in their letter
Non-bank mortagge servicers have been facing added hardship during the COVID-19 crisis. Both Powell and Mnuchin have issued statements acknowledging that they are aware of the issues servicers are facing, however, no action has been taken by either agency.