On Wednesday, the Federal Reserve will be releasing the latest Beige Book, a summary of current economic conditions by district.
As the economy struggles with the impact of COVID-19, federal financial institution regulatory agencies, including the Fed, and the state financial regulators issued a joint policy statement earlier this month providing needed regulatory flexibility to enable mortgage servicers to work with struggling consumers affected by the Coronavirus Disease emergency.
Also, on this week's installments of DS5: Inside the Industry, we'll be speaking to:
- Robert Senko, President, ACC Mortgage (Tuesday)
- Sharron Levine, Director, Office of Minority & Women Inclusion, FHFA (Tuesday)
- Suzy Lindblom, COO, Planet Home Lending (Thursday)
- Christopher Whalen, Investment Banker, Author, The Institutional Risk Analyst (Thursday)
The actions announced by the agencies inform servicers of the agencies' flexible supervisory and enforcement approach during the COVID-19 pandemic regarding certain communications to consumers required by the mortgage servicing rules. The policy statement and guidance issued today will facilitate mortgage servicers' ability to place consumers in short-term payment forbearance programs such as the one established by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
Under the CARES Act, borrowers in a federally backed mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID-19 pandemic, may request forbearance by making a request to their mortgage servicer and affirming that they are experiencing a financial hardship during the COVID–19 pandemic. In response, servicers must provide a CARES Act forbearance, that allows borrowers to defer their mortgage payments for up to 180-days and possibly longer.
Additionally, the Federal Reserve Board has announced a temporary change to its supplementary leverage ratio rule. The change would exclude U.S. Treasury securities and deposits at Federal Reserve Banks from the calculation of the rule for holding companies, and will be in effect until March 31, 2021.
Here's what else is happening in The Week Ahead:
- S&P Homebuilders Select Industry Index
- Census Bureau Housing Starts
- Census Bureau Building Permits