Journal Article

Why Wasn’t there a Nonbank Mortgage Servicer Liquidity Crisis?


Abstract: In March 2020, in the early days of the COVID-19 pandemic, many were concerned about the liquidity of nonbank mortgage servicers. As it turned out, the vast majority of these servicers did not face a liquidity crisis. In this Commentary I detail the reasons why, including lower than expected take up rates of forbearance, the role played by mortgage origination income, and the actions taken by the government-sponsored enterprises, Ginnie Mae, and housing agencies.

https://doi.org/10.26509/frbc-ec-202115

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2021-07-01

Volume: 2021

Issue: 15

Pages: 7