Mortgage Servicers at Risk If Virus Persists, FHFA Chief Says
- Calabria warns of ‘a lot of stress’ if pain lasts for 60 days
- He says Congress or Fed may need to provide a lifeline
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Nonbank mortgage servicers could find themselves at risk of collapse if economic disruption stemming from the coronavirus pandemic continues for more than two months, Federal Housing Finance Agency Director Mark Calabria said Wednesday.
Calabria’s agency and others have asked mortgage servicers to work with virus-affected borrowers and renters to ensure people aren’t forced from their homes at a time of national crisis. But unless things improve within six to eight weeks, “we’re going to be looking at a lot of stress among servicers,” he said in a Bloomberg Television interview.