Nearly Three Million Homeowners Find Mortgage Relief, Others Still Struggle

Apr 21, 2020

Suburban house. Credit: iStock.com/adamkaz

Director of Events

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.

About the author

Navi Persaud

Director of Events

Navi Persaud is Director of Events at NMP.

Link copied

Published

Apr 21, 2020

Industry News

Newfi And Addy AI Announce Partnership

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending

Newfi and Addy AI today announced a collaboration focused on the continued evolution of artificial intelligence in mortgage lending.Newfi has built innovative lending products and a modern approach to the mortgage market. As the industry evolves, the company continues to exp...

Analysis and Data

Smaller Down Payments Give Buyers More Room, But Rates Limit The Savings

The typical down payment fell 9% from a year ago, while shifting market conditions are giving originators different affordability conversations across the country

Homebuyers are putting less money down than they were a year ago, another sign that increased inventory and greater negotiating room are changing the purchase market.The typical down payment fell to $27,100 in the second quarter of 2026, the lowest second-quarter dollar amou...

Nov

Pasadena, CA

More from

Industry News

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance

Sep 22, 2026

MPF Expands Eligibility For Manufactured And Renovation Loans

The Mortgage Partnership Finance Program has expanded MPF Traditional eligibility for affordable loans, manufactured homes, renovations, and lender-funded assistance

Industry News

Sep 22, 2026