From the Document: "The coronavirus (COVID-19) pandemic has affected the economy in numerous ways. Many states have issued some variation of a lockdown, restricting when citizens can leave their home and limiting business operations to critical services, such as groceries or pharmacies. Many businesses have closed operations, while others have reduced their workforce considerably. As a result, jobless claims have increased since the outbreak, leaving many consumers struggling to meet their financial obligations. One of the most significant financial obligations consumers are struggling to meet is their mortgage or rent payments. In the past three weeks, banking regulators have taken measures to provide consumers relief through payment deferral and loan modification plans. [...] Federal housing agencies issued a 60-day moratorium on foreclosures and evictions on March 18. In addition, Congress passed the CARES [Coronavirus Aid, Relief, and Economic Security] Act (P.L. 116-136), which contains provisions allowing consumers to enter into forbearance (payment deferment) agreements on certain qualifying mortgages and temporarily suspend certain foreclosures and evictions. If, however, missed loan payments generate mounting losses on depository institutions (i.e., banks and credit unions), their capital can erode quickly."
CRS Insight, IN11316
Congressional Research Service: https://crsreports.congress.gov/