“FHFA’s announcement today is an important first step. Ensuring servicers can move payments to the end of the loan term and get reimbursed in four months is progress.
But requests by consumers for help in paying their home mortgages are already very high and growing. That is no surprise given the skyrocketing unemployment numbers. As forbearance requests continue to rise, we will have to do more.
The federal government must not hesitate to support the nation’s housing finance system, so that mortgage providers can continue helping homeowners at risk. Without that support, a deteriorating situation in housing and homeownership will increase the likelihood of a COVID-19 recession becoming a depression.
Under the terms of existing home loans, mortgage servicers are held responsible to investors for making the monthly payments for their customers in forbearance. That works in normal times. However, as the COVID-19 crisis drives up ever-increasing forbearance cases, we need mortgage providers to remain healthy.
Moreover, housing markets rely on people having incomes. Protecting paychecks, supporting small businesses and providing unemployment assistance are enormously critical steps right now for the preservation of American housing.”
About NHC: The National Housing Conference has been defending the American Home since 1931. Everyone in America should have equal opportunity to live in a quality, affordable home in a thriving community. NHC convenes and collaborates with our diverse membership and the broader housing and community development sectors to advance our policy, research and communications initiatives to effect positive change at the federal, state and local levels. Politically diverse and nonpartisan, NHC is a 501(c)3 nonprofit organization.