2 Million Americans Missing Mortgage Payments As Coronavirus Shutdown Takes Its Toll

Political News



Roughly 2 million homeowners in the United States have chosen to skip their monthly mortgage payment as the coronavirus pandemic takes a heavy economic toll on the country.

You Might Like

As more Americans are losing their job, being furloughed, or experiencing reduced income, a growing number of home loans are being left unpaid. The latest data from the Mortgage Bankers Association shows that many borrowers are choosing to go into forbearance, an agreement with a lender that allows them to momentarily forgo payments.

Around 3.74% of home loans have gone into forbearance as of April 5, according to The Wall Street Journal. This statistic is up from roughly 2.75% from the previous week.

(Article Continues Below Advertisement)

The number of borrowers opting to skip their monthly payments is only expected to get larger.

“[T]he number of borrowers asking for forbearance will likely continue to rise at a rapid pace,” stated Mike Fratantoni, the chief economist for the Mortgage Bankers Association (MBA).

The MBA, an association that represents nonbank companies such as Freedom Mortgage Corp. and Quicken Loans Inc, serves as a type of middleman for borrowers who make monthly payments for their home and the lenders who receive the payments. The group’s polling data reflects a sample size of around 27 million loans.

President Donald Trump signed a $2.2 trillion relief package in late March. The stimulus provides $1,200 to every single adult in the U.S. who makes less than $75,000, and also provides forgivable loans of up to $10 million to every small business in the country.

(Article Continues Below Advertisement)

Sponsored Content

However, the relief package does not provide assistance to mortgage services — which could pose a major problem if this trend continues on. These companies argue they may have to locate tens of billions of dollars to meet payroll with their investors if more homeowners quit making their mortgage payments.

More than 580,800 peoples across the country have tested positive for COVID-19 since the crisis began. Of those who have tested positive, more than 23,000 have died from the virus.

The rapid spread has prompted states to go under lockdown, forcing businesses to shut down. The result has been more than six million Americans filing for unemployment.

Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher that can provide a large audience. For licensing opportunities of our original content, please contact [email protected]

Wake up Right! Subscribe to our Morning Briefing and get the news delivered to your inbox before breakfast!

Sponsored Content


Read the Original Article Here

Articles You May Like

REPORT: Democrats Running In Rural Areas Are Keeping Their Party Identification Out Of Their Ads
EYE ROLL: CNN’s Biden Town Hall Went Exactly the Way You Expected
China’s Sanctions a ‘Badge of Honor,’ Say U.S. Targets
Maryland National Guard Says It’s In Dire Financial Straits After Congress Has Yet To Reimburse Funds Used To Protect The Capitol
Biden’s Wild Murder and Jim Crow Accusations

Leave a Reply

Your email address will not be published. Required fields are marked *