MBA President and CEO Bob Broeksmit, CMB, released the following statement regarding the Federal Reserve’s announcement that it will increase the scale and scope of purchases of agency mortgage-backed securities (MBS) in the amounts needed to support the smooth functioning of markets, and the purchase of agency commercial mortgage-backed securities (CMBS):
“MBA applauds the Fed for announcing its intent to increase the scale and scope of its purchase of agency MBS and agency commercial MBS. This will not only protect consumers by stabilizing mortgage rates for home purchases, but it will also help homeowners to refinance their loans and support multifamily real estate markets. Both are powerful forms of stimulus for the economy, which have been slowed due to unprecedented market volatility.
“MBA looks forward to continuing to work with all policymakers and stakeholders, including Congress and the administration, to help consumers, lenders, and mortgage servicers. A critically important program will be to provide support to impacted homeowners through forbearance. In order for this to succeed, liquidity is required for the residential mortgage servicing sector, which can come from a Ginnie Mae program and the creation of a dedicated Federal Reserve liquidity facility.”