“U.S. mortgage firms push for support as borrowers halt payments”
May 5, 2020
“The number of people seeking to have mortgage payments paused or reduced rose to 7.5% as of April 26 from 7.0% a week earlier as the economic effects of the novel coronavirus outbreak stretched household finances, figures from the Mortgage Bankers Association (MBA) showed. The MBA estimates that 3.8 million homeowners are now in forbearance.
The surge in delayed payments could leave mortgage service companies, which pool home loans and sell them to investors, with a liquidity shortfall of as much as $100 billion over the next nine months, according to the MBA. That is because mortgage servicers still have to advance scheduled payments to investors even if borrowers fail to make their payments…”
https://finance.yahoo.com/news/u-mortgage-firms-push-support-200000846.html