Skip to main content

Nearly Three Million Homeowners Find Mortgage Relief, Others Still Struggle

Navi Persaud
Apr 21, 2020
Suburban house. Credit:

The mortgage industry has been working with homeowners who are looking for relief on their loans during the COVID-19 pandemic. To date, 2.9 million homeowners have found some type of relief. However, there are many others running into problems when trying to secure help.
Yesterday, NMP reported that Mortgage Bankers Association data that revealed the share of mortgages in forbearance jumped from 3.74% to 5.95%. While the mortgage industry tries to get through the increasingly high number of requests, homeowners are reporting issues with securing relief. Some homeowners still fear getting help because they may have to pay all of the backlogged payments at once, according to an NPR report. That being said, the report acknowledges there are other options when it comes to repaying these loans.
According to the report, mortgage companies reluctancy to provide help may be a sign that they, too, are in a desperate situation. Forbearance eventually trickles down to mortgage servicers who have to carry the payments when a borrower cannot. As this issue continues to arise, mortgage servicers are still looking for help at the government level.
"This is putting incredible stress on the system," says Michael Fratantoni, chief economist at the MBA. Fratantoni and fellow advocates have been lobbying for the government to create an emergency source of funds so the mortgage companies don't run out of money, according to the NPR report. "Mortgage servicers are performing an essential function of the housing finance system," Fratantoni said.

Supreme Court Gives Biden Full Control Over Federal Housing Finance Agency

The U.S. Supreme Court gave President Joe Biden the authority to remove the head of the Federal Housing Finance Agency (FHFA) while dismissing claims from shareholders of Fannie Mae and Freddie Mac.

Industry News
Jun 23, 2021
Ocwen Financial To Acquire Reverse Mortgage Servicing Platform

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation will acquire RMS' reverse mortgage servicing platform.

Industry News
Jun 18, 2021
UniteCT Emergency Rental Assistance Succeeds

Thanks to the successful launch of the UniteCT program, emergency rental assistance funds are helping Connecticut residents maintain housing.

Industry News
Jun 17, 2021
Angel Oak Mortgage Announces Initial Public Offering

Angel Oak Mortgage announced its initial public offering of 7,200,000 shares of its common stock at $19 per share.

Industry News
Jun 17, 2021
Mortgage Apps Rebound After Three Consecutive Weeks Of Declines

The Mortgage Bankers Association reported the first increase in mortgage applications after a three consecutive weeks on declines.

Industry News
Jun 17, 2021
CFPB New Rule Prevents Predatory Lending To Military Service Members

The CFPB stipulates its authority to examine supervised financial institutions for risk to active duty servicemembers and their dependents.

Industry News
Jun 16, 2021