The Pass-Through Assistance Program (PTAP) needs reform to transform it into a robust liquidity backstop for mortgage servicers, enhancing stability and support amid market stress.
Current limitations, such as restrictive eligibility and high borrowing rates, undermine PTAP's potential to aid Independent Mortgage Banks (IMBs), crucial for housing finance stability.
To stabilize servicers and bolster small lenders, PTAP should have expanded eligibility and increased legislative support to prevent exclusion from liquidity during economic downturns.
Flexibility in accessing liquidity is vital for Independent Mortgage Banks, as it enables them to navigate financial challenges and continue supporting their communities effectively.
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