Publication | Law360
Mortgage Servicers Will Bear Brunt of CARES Act Relief
Greg Halm writes about how the residential mortgage relief element of the CARES Act is being financed and the effect this may have on loan servicers.
Many American homeowners are hurting as a result of the economic shutdown in response to COVID-19. The federal government has enacted legislation aimed at providing these homeowners some temporary relief on their mortgages.
Regrettably, the program design chosen to deliver this help is flawed in two important respects: It provides assistance to some borrowers who do not need help, and it requires the wrong entities, mortgage servicers, to finance a large portion of this assistance.