MReport April 2020

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M R EP O RT | 27 FEATURE Fed Unveils Emergency Lending Program The U.S. Department of the Treasury will provide $10 billion of credit protection under new plans. T he Federal Reserve Board an- nounced it would establish a Commercial Paper Funding Facil- ity (CPFF) to support the flow of credit to households and businesses. The Treasury will provide $10 billion of credit protection to the Federal Reserve in connection with the CPFF from the Trea- sury's Exchange Stabilization Fund (ESF). The Federal Reserve will then provide financing to the SPV under the CPFF. Its loans will be secured by all of the assets of the SPV. According to The New York Times, put- ting it into action required the signoff of Treasury Secretary Steven Mnuchin and Treasury will provide $10 billion of credit protection to the Fed, using Treasury's Exchange Stabilization Fund. "Commercial paper markets directly finance a wide range of economic activity," the Fed said in a statement, noting that it supplies "credit and funding for auto loans and mortgages as well as liquidity to meet the operational needs of a range of companies." Additionally, the White House will ask Congress for a stimulus package worth at least $850 billion to address the economic fallout of the coronavirus outbreak as members of both parties express a height- ened urgency to prop up the economy in response to the crisis. The Fed announced that over the coming months that it will increase its holdings of Treasury securities by at least $500 billion and its holdings and agency mortgage-backed securities by at least $200 billion. Virus Outbreak Impacting How Buyers, Sellers View Their Homes Washington and California report homes are being taken off the market. T he National Association of Realtors (NAR) found that 25% of home sellers are changing how their home is viewed on the market due to the outbreak of COVID-19. These changes include stopping open houses, requiring potential buyers to wash their hands and use hand sanitizers, and asking buyers to remove shoes or wear footies. The share of sellers adopting these changes, and more, rose to 44% and 34%, respectively, in Washington and California NAR's survey—conducted March 9-10—discussed the coro- navirus and how it has impacted buyers and seller interest and behavior. According to the survey, 37% said lower mortgage rates bring more optimism to buyers than stock market correction. Also, 78% of buyers said there has been no change in buyer interest due to COVID-19. Sixteen percent of those surveyed said buyer interest has declined due to coronavirus, those in California and Washington reporting larger drops in inter- est—21% and 19%, respectively Nine in 10 members surveyed said COVID-19 has not affected the number of homes on the market. Also, in Washington and California, 5% and 4% of members reported homes were removed from the market. That number is 3% for members across the nation. President Donald Trump officially announced a national emergency on Friday due to the ongoing battle with COVID-19. Trump said the declaration will free up $50 billion in federal fund- ing that can be used to help state and local governments. Additionally, Trump said that he recommends states enact emergency operation centers immediately and for hospitals to activate their emergency prepared- ness plans. He added that the U.S. has made "tremendous progress" as it combats the coronavirus. Trump imposed a 30-day travel ban on foreign nationals from Europe entering the U.S. on Wednesday. "We will overcome," Trump said during his address in Rose Garden, adding that the nation's fight against COVID-19 is entering a different phase. Trump said that a new partnership has been forged with the private sector to develop testing for COVID-19. The President, however, stressed that only those who show symp- toms use the tests. COVER STORY SPECIAL REPORT: COVID-19

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