COVID-19 - Mortgage Servicing Impact, Gagan Sharma, President/CEO BSI Financial

This month, we are producing a series of podcasts featuring industry experts to discuss the impact of the covid-19 crisis on mortgage origination, distressed mortgage and real estate related assets.  Today, we are focused on mortgage servicing.

Servicers are required to advance principal and interest on securitized mortgage loans to investors even if the borrower stops making payments.

Earlier this week, to the dismay of many in the servicing industry, the Federal Housing Finance Agency announced it has no plans to create a federally backed liquidity facility to assist struggling servicers.  In fact, The Agency will simply transfer servicing in the event a servicer lacks enough cash on hand, most likely causing another round of servicing consolidation or perhaps forcing some servicers out of business.

Joining the podcast to discuss servicing in todays COVID-19 environment is Gagan Sharma, President and CEO of BSI Financial Services.  Gagan acquired BSI Financial from a bank in 2006 and has grown BSI to one of the top nationwide special servicing platforms