ABSTRACT

Impact of COVID-19-Related Forbearances on the Federal Mortgage Finance System [May 13, 2020]   [open pdf - 660KB]

From the Document: "One of the major economic impacts of the Coronavirus Disease 2019 (COVID-19) pandemic has been loss of income, which has left many Americans unable to repay their financial obligations--including their mortgage payments. In response, regulators have encouraged financial institutions to work with customers to allow them to defer payments on mortgages through a process known as 'forbearance.' Provisions in the CARES [Coronavirus Aid, Relief, and Economic Security] Act (P.L. 116-136) require mortgage servicers to provide several months of forbearance to borrowers (at the borrowers' requests, after they demonstrate a COVID-19-related financial hardship) with a 'federally backed mortgage.' This Insight explains the term federally backed mortgage and examines some of the potential impacts that forbearance on these mortgages may have on the mortgage finance system"

Report Number:
CRS Insight, IN11385
Author:
Publisher:
Date:
2020-05-13
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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