When COVID-19 sent waves through our financial markets in March 2020, I was the regulator overseeing most of America's mortgage market. When the usual calls for Wall Street bailouts came, others, such as the Federal Reserve, responded generously with the public's money. I was an exception. Despite the dire warnings that our mortgage market would collapse if I did not give in, we gave no bailout—and our mortgage market continued to function well.
The American economy lost 22 million jobs from February through April of 2020. As in 2008, these historic job losses posed significant risks to our mortgage market, as the ability of borrowers to pay came into question. The Federal Housing Finance Agency (FHFA), which I headed, and which supervises Fannie Mae and Freddie Mac, reacted quickly to establish programs to assist borrowers and renters. We expected to be repaid any deferred mortgage payments. Many private lenders voluntarily established programs similar to ours.
