Over the weekend, we assessed the implications of Ginnie’s new pass-through policy and the FSOC task force’s urgent work to craft a mortgage-servicer rescue or, if not that, at least a lifeline. We conclude that the Fed and other bank regulators are more than reluctant to relax rules that put banks at risk instead of servicers. As we concluded last week, the CARES Act’s windows do not easily accommodate servicers, putting the onus on Treasury, FHFA, and Ginnie to come up with Plan B.
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