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Mnuchin Forms Task Force to Confront Mortgage Firms’ Liquidity

Bloomberg business news
$16 Trillion U.S. Mortgage Market Rattles Wall Street

Treasury Secretary Steven Mnuchin said he has formed a task force of U.S. financial regulators to deal with the liquidity shortfall that mortgage service firms may face as swaths of homeowners stop making their monthly payments.

Mnuchin said he’s asked the task force members to give him recommendations by March 30 on how the U.S. can address a potential cash crunch for servicers, who collect money from borrowers monthly and facilitate payments to investors in mortgage bonds.