Any day now, maybe even today, Ginnie Mae will announce the details on its Pass-Through Assistance Program (“PTAP”), through which Ginnie Mae will provide a liquidity facility for issuers that need help meeting their obligation as issuers to pass-through payments of regularly scheduled payments of principal and interest, regardless of whether the loans are subject to forbearance. While quickly trying to finalize PTAP program documents, on Monday April 7th, Ginnie Mae announced that it would recognize servicing advance financing facilities under its Acknowledgement Agreement. Previously, Ginnie Mae would not recognize a servicing advance receivable as an independent component of mortgage servicing rights related to loans pooled into Ginnie Mae securities (“MSRs”). This new recognition improves the ability of servicers to finance a valuable income stream, which has proven increasingly costly as the COVID-19 pandemic has greatly challenged liquidity in the housing market. But this recognition comes with limitations, which we detail below.
Continue Reading Modest Improvements: Ginnie Mae’s Servicing Advance Facility Recognition
The Case for Supporting Nonbank Mortgage Servicers
For many of us who have been around for a while, it seems as if we have seen this movie before. An economic downturn leads to increased borrower delinquencies on mortgage loans with a progressively increasing obligation for the servicers of those mortgage loans to make principal and interest advances to cover the delinquencies.
But
Mortgage Servicing in the Pandemic—What Servicers Need to Know
Federal regulators and Congress continue to release new guidance and requirements to assist residential mortgage loan borrowers facing economic hardships due to the pandemic. But in light of the anticipated volume of requests and associated burden on servicers, they also are offering some regulatory relief. This alert contains a summary of relevant mortgage servicing requirements,
Origination in the Era of COVID-19: the GSEs, FHA, and VA Issue Guidance for Appraisals and Income Verification
COVID-19 has strained all aspects of life in the United States, including the housing and mortgage industries. Social distancing, stay-at-home orders, and business closures have disrupted the abilities of many workers to complete their duties on a “business as usual” basis. In the mortgage market, there is a direct impact on a mortgage lender’s ability
What are “Essential” Consumer Financial Services Businesses?
Each day, new jurisdictions issue orders for businesses to cease operations and for residents to stay at home. The orders typically exempt “essential businesses,” including certain businesses and workers in the financial sector. Those jurisdictions recognize that consumer financial services businesses provide essential access to deposits, credit, and payment systems. Often, though, the orders’ terminology
SBA Releases Guidance on PPP Small Business Loans
The Small Business Administration (SBA) released an interim final rule on the evening of April 2, 2020, outlining key provisions of the SBA’s Paycheck Protection Program (PPP) and the provisions of the CARES Act relating to loan forgiveness. The rule is effective immediately.
Continue reading on Mayer Brown’s Retained Interest blog.
NMLS Amends Extension to State Reporting Due Dates, as Coronavirus Still Plagues the Land
Two days after its original announcement, the NMLS Policy Committee has amended its previously announced 60-day temporary deadline extension for certain types of reporting submitted in NMLS. According to the current posting on the NMLS website, it appears that because the Federal Financial Institutions Examination Council announced there would be a 30-day extension for certain reports, the NMLS Policy Committee reduced its extension for filing financial statements and certain other reports from 60 days to 30 days. The revised reporting due date table has also been amended to reflect the new 30-day temporary deadline extension. We do not know the consideration(s) that went into this new decision.
Plus, the NMLS Policy Committee is now encouraging
Continue Reading NMLS Amends Extension to State Reporting Due Dates, as Coronavirus Still Plagues the Land
School’s Out: Proposed Relief for Federal Student Loan Borrowers Impacted by COVID-19
On Friday, March 27, 2020, the President signed into law a stimulus bill designed to provide emergency assistance for those affected by the COVID-19 national emergency (the “CARES Act” or “Act”) that includes certain temporary relief for federal student loan borrowers. The Act largely codifies the Department of Education’s previous announcement regarding temporary relief to federal student loan borrowers impacted by the COVID-19 national emergency and extends the timeline for the temporary relief measures.
The Act provides three primary relief measures to federal student loan borrowers whose loans are held by the Department of Education:Continue Reading School’s Out: Proposed Relief for Federal Student Loan Borrowers Impacted by COVID-19
Conference Call on COVID-19 Guidance from the GSEs and Federal Agencies
On Monday, March 30, 2020, from 4:00 p.m. – 4:30 p.m. EDT, Mayer Brown partners Holly Spencer Bunting and Krista Cooley will discuss actions taken in response to the COVID-19 pandemic by the Federal Housing Administration, the Federal Housing Finance Agency, Fannie Mae and Freddie Mac. This call is a part of Mayer Brown’s Global
Coronavirus Still Plagues the Land, but State Regulators Step Up and Provide Some Temporary Relief from Certain State Filings
The next test for mortgage finance companies licensed through the NMLS is the requirement of a number of states to provide financial statements through the NMLS within 90 days of the licensee’s fiscal year end. We brought this issue to the attention of the Conference of State Bank Supervisors (“CSBS”) two weeks ago, and this was considered by the NMLS Policy Committee last week. No decision was made at that time, but the Policy Committee agreed to consider the matter further this week. As we understand, after the meeting of the Policy Committee on Tuesday, it was decided that while financial statements are still due, there will be a 60 day grace period to provide the financial statements, and certain other required filings of state licensed entities. Specifically, the NMLS Policy Committee issued the following yesterday:
“In response to the COVID-19 pandemic and its impact on state regulated entities, the NMLS Policy Committee has implemented a 60-Day deadline extension for the following types of reporting submitted in NMLS:
- Money Services Business Call Report
- Mortgage Call Report
- Financial Statement
