Skip to main content

Over Half Of Mortgage Borrowers Lost Income During Pandemic

Jul 21, 2020
Lending Tree Chart
Senior Editor

Lending Tree is out with a new report that shows 53% of mortgage borrowers in the United States have lost income during the pandemic. About 4 in 10 mortgage borrowers said they, or members in their household, have been receiving unemployment benefits.
 
Compounding the issue is layoffs once thought to be temporary are becoming permanent in many cases. Tendayi Kapfidze, LendingTree's chief economist, says “Unfortunately, the response to the coronavirus crisis has been very poor; many layoffs that were temporary are beginning to become permanent, and the economy is likely to remain weak well into 2021."
 
When broken down by age groups, 61% of millennials have lost household income, followed by 57% of Generation X and about 37% of baby boomers. Nearly half (48%) of millennial and 50% of Gen X borrowers report they or another person in their home are receiving unemployment insurance benefits. Just about 17% of baby boomer borrowers fall into this group.
 
Since March, the report says when the COVID-19 outbreak began to spread widely across the United States, nearly 1 in 5 (18%) of mortgage borrowers have missed a mortgage payment. Of that group, 5% were not in a mortgage forbearance agreement with their lender, which permits a temporary reduction or suspension of monthly payments. In comparison, 82% of borrowers have continued to make payments – 22% of which are participating in a mortgage forbearance plan.
 
Amid the national economic turmoil caused by the coronavirus pandemic, less than one-third (30%) of mortgage borrowers have entered into a mortgage forbearance agreement. Another 12% are in the process of negotiating the terms of their mortgage assistance, while 2% of borrowers were denied forbearance help.
 
“The forbearance program is essential to maintaining the health of the housing market and supporting the economy,” said Kapfidze. “Without it, millions of people would be at risk of losing their homes.”
 
Of the 30% of borrowers in forbearance, more than 4 in 10 (44%) have an annual household income of at least $100,000, which is more than any other income bracket. About 7% of borrowers earning less than $25,000 in income applied for mortgage relief but were denied. This is the highest denial rate among all income brackets.
About the author
Senior Editor
Keith Griffin is a senior editor at NMP.
Published
Jul 21, 2020
HUD Freezes Foreclosures On FHA Mortgages In Texas Flood Zone

Kerr County homeowners among hardest hit in disaster that’s claimed more than 100 lives

Jul 09, 2025
Fewer Canadians Hunt For U.S. Property

Largest component of international buyers in U.S. takes more than 25% hit

Jul 08, 2025
Fannie, Freddie Now Allow Lenders To Use VantageScore 4.0

Lenders will keep tri-merge credit scoring model; what this shift means

Fairway Independent Mortgage Corporation Announces Rebranding

Now Fairway Home Mortgage, company also donates $1M to support relief efforts in deadly Texas flooding

Jul 07, 2025
FHFA Chief Officially Calls For Investigation Of Federal Reserve Chairman Powell

Alleges Powell lied in testimony to Congress regarding Fed building renovations, says Fed Chair should be fired

BBB Will Impact Homeowners, Buyers

U.S. House and Senate must agree on certain tax, mortgage insurance premium deductions