NCSHA Letter to FHFA Director on COVID-19-Related Liquidity Needs of State HFA Seller-Servicers of MBS
This letter from NCSHA to Federal Housing Finance Agency Director Mark Calabria describes the urgent COVID-19-related liquidity needs of state housing finance agency (HFA) seller-servicers of Fannie Mae and Freddie Mac mortgage-backed securities and asks him to take immediate steps to help those HFAs to ensure they can continue to assist home buyers and homeowners throughout the country.
The U.S. Senate passed unanimously on March 25, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, after reaching agreement among Democratic, Republican, and White House negotiators. The House is expected to pass the bill on March 27. This memorandum summarizes the housing-specific provisions in the bill, including supplemental appropriations for HUD and other housing programs, increased liquidity for state and local municipal bond issuers, and forbearance for homeowners and multifamily properties.
On March 25, 2020, NCSHA sent this letter to Ginnie Mae urging it to help state housing finance agency (HFA) issuers of Ginnie Mae securities meet their pressing liquidity needs due to COVID‐19. The letter describes the servicing and liquidity concerns of HFA issuers and recommends Ginnie Mae provide relief to them. It also explains that, while NCSHA supports industry-wide efforts to provide liquidity to servicers, the mission and structure of state HFAs demand a more targeted approach.
NCSHA sent this letter calling on the Internal Revenue Service and U.S. Department of the Treasury to take immediate steps to ease Housing Credit deadlines and provide other needed program accommodations due to social distancing during the COVIED-19 pandemic.
The ACTION Campaign, which NCSHA co-chairs, released this statement calling on Congress to take immediate action to postpone certain Housing Credit deadlines to prevent developments from losing their tax credits due to the impact of COVID-19. The statement also urges Congress to establish a 4 percent minimum rate for bond-financed developments, as action by the Federal Reserve to reduce interest rates has driven the 4 percent credit rate to a historical low.
A special March 17, 2020 address by Brian D. Montgomery, HUD Assistant Secretary for Housing and Federal Housing Commissioner, regarding COVID-19. "I’m reaching out at this extraordinary time, during the Coronavirus (COVID-19) outbreak, to ensure that FHA’s many stakeholders – including borrowers, lenders, property owners and agents, and business partners — understand the status of our operations and our plans as health and economic events unfold. and evolve."