As job losses from Covid-19 mount, more and more borrowers are delaying their monthly mortgage payments and taking advantage of the government's bailout program.
As job losses from the Covid-19 pandemic mount, more and more borrowers are delaying their monthly mortgage payments and taking advantage of the government's bailout program. The numbers have been swelling at the rate of about half a million a week.
Together, they account for $841 billion in unpaid principal and make up 6.1% of all loans backed by Fannie Mae and Freddie Mac. The government's program, part of the CARES Act, which President Donald Trump signed in late March, allows borrowers to delay up to a year's worth of payments. Those payments must be made up later through either repayment plans or mortgage modifications. Government-backed loans make up about three quarters of the current mortgage market, but for borrowers without those loans, most banks and private lenders are also offering forbearance programs.
Ginnie Mae, which is behind FHA/VA loans, there is a pass through assistance program for servicers. For Fannie Mae and Freddie Mac loans, their regulator, the FHFA, recently announced that servicers would be on the hook for a maximum four months. Given still-rising numbers of forbearances, servicers of GSE-backed loans would still have to make nearly $8 billion in payments.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Getting coronavirus mortgage relief is confusing. Here's how to make it easierSince the coronavirus pandemic shut down much of the U.S. economy, homeowners have flooded their mortgage companies with pleas for help. Forbearance programs have brought temporary relief, but the process has been confusing. Here’s what you need to know:
Read more »
What it's like to defer your mortgage during the coronavirus - Business InsiderThis self-employed real estate agent lost work due to the coronavirus. By deferring mortgage payments, she's able to pump money into her business.
Read more »
Coronavirus stimulus checks: Payments to dead relatives should be returned, Mnuchin saysRelatives who have received a stimulus payment for a deceased family member must return it to the federal government, according to Treasury Secretary Steven Mnuchin.
Read more »
Navy delays decision on reinstating fired captain who warned of coronavirusActing Navy Secretary James McPherson changed his mind after hearing Joint Chiefs Chairman Gen. Mark Milley&39;s advice.
Read more »
GM's profitable SUVs remain on-track for 2020; coronavirus delays other vehiclesThe launch of the SUVs was viewed as crucial as crucial to the automaker's profitability prior to the Covid-19 crisis. That importance has grown even more so as GM looks for ways to resurrect its balance sheet this year.
Read more »
Americans report using all caps, other hacks to get IRS coronavirus stimulus tracking tool to workMany users frustrated by the IRS's Get My Payment tool to track their coronavirus stimulus relief check report using all caps and other hacks to get the site to work properly.
Read more »