Category: RMBS Regulation

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Thursday 7 May 2020 16:52 London/ 11.52 New York/ 00.52 (+ 1 day) Tokyo

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Recent limitations on liability leave unanswered questions for mortgage servicers

The 21 April FHFA announcement that agency mortgage servicers will have to fund no more than four months of missed payments on a loan in forbearance (SCI 22 April) only partially lifts the dark cloud over the servicers, say market sources.

“The announcement was a welcome development and we were very happy to see it, but there is more work to be done,” says Michael McElroy, a partner in Mayer Brown’s Washington, DC office and a member of the firm’s banking and finance practice.