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Mnuchin Says U.S. Has No Plans for Mortgage Servicer Lifeline

  • He says steps taken by agencies have eased liquidity concerns
  • Nonbank servicers don’t pose systemic risk, Mnuchin adds
Steven Mnuchin
Steven MnuchinPhotographer: Kevin Dietsch/UPI/Bloomberg
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Treasury Secretary Steven Mnuchin said the U.S. has no current plans to create a Federal Reserve facility to inject funding into nonbank mortgage servicers, as recent government moves will help the firms get through the risk of millions of borrowers missing their mortgage payments.

Mnuchin pointed to Ginnie Mae’s decision last month to facilitate payments to mortgage bondholders themselves, thus covering an obligation that would have fallen on servicers. That combined with steps taken this week by the Federal Housing Finance Agency, which regulates mortgage giants Fannie Mae and Freddie Mac, will “deal with liquidity concerns,” he said in a Bloomberg News interview on Thursday.