flexiblefullpage - default
Currently Reading

Lenders Ask Feds for Cash to Avoid Collapse Amid Mortgage Payment Delays

Advertisement
billboard - default

Lenders Ask Feds for Cash to Avoid Collapse Amid Mortgage Payment Delays


April 7, 2020
100 dollar bills
By Denise Torres

The Cares Act mandates that lenders allow borrowers with government-backed mortgages to delay monthly payments for at least 90 days and up to a year. In theory, deferring mortgage payments in a time of national emergency will help stave off an avalanche of foreclosures, but lenders are deeply concerned about one key detail: They still have to pay bond holders, and many do not have enough cash available. The mortgage delinquency rate was just near a record low, and lenders say that the sudden wave of mortgage deferrals will put an immense strain on their resources. Now, a coalition of mortgage and finance industry leaders is calling on the government to find a solution to avoid what one CEO calls “complete chaos.”

A broad coalition of mortgage and finance industry leaders on Saturday sent a plea to federal regulators, asking for desperately needed cash to keep the mortgage system running during the coronavirus pandemic, as requests from borrowers for the federal mortgage forbearance program are pouring in at an alarming rate.

The Cares Act, which seeks to limit the economic damage from COVID-19, mandates that all borrowers with government-backed mortgages — about 62% of all first lien mortgages according to Urban Institute — be allowed to delay at least 90 days of monthly payments and possibly up to a year’s worth.

Read More

 

Related Stories

Financing

FHA Introduces Plan to Help Mortgage Borrowers With Monthly Payments

The Federal Housing Administration is working to reduce monthly payments for homeowners struggling to pay their mortgages by introducing a new payment supplement program

Market Data + Trends

High Home Prices and Rents Cause Investor Pullback, Giving Homebuyers a Chance

As professional investor activity in the residential housing market slows, homebuyers may enjoy less competition for available homes

Financing

Buyers Retreat as Mortgage Rates Creep Over 7% Threshold Again

Mortgage rates rose above 7% again this week, and experts say purchase applications are likely to slow as a result

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category



Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.