Mortgage Roundup (4/14/20) – Forbearance, Tight Credit & Wall Street

Good morning! Today is Tuesday, April 14. The first coronavirus stimulus checks are out and many will receive payment today. States are creating regional alliances to determine ways to reopen their economies as coronavirus case numbers ease.

And in mortgage and housing news …

FORBEARANCE INCREASE: The number of loans in forbearance jumped significantly as the number of Americans struggling financially continues to climb during the coronavirus pandemic. 

BORROWER POOL: Amid tightening mortgage credit across the country, the nation’s largest lender is narrowing the pool of people they will help buy a home. 

GLOBAL FUND MANAGERS: The April Bank of America Fund Managers’ Survey, which polls more than 180 investors controlling around $545 billion in assets, suggests nearly all are expecting a global recession this year, but only 15 percent see a rapid recovery once the pandemic wanes. 

WALL STREET BLAMES CALABRIA: With the coronavirus crisis crushing the real estate market, some on Wall Street are assailing Federal Housing Finance Agency Director Mark Calabria for blocking a government bailout of mortgage lenders.

WAREHOUSE DEMAND: Real estate firms expect coronavirus-driven shifts in buying to spur demand for bigger inventories and more warehouses

MORTGAGE MAZE: Not all mortgages are owned by the places where the payments are going. That makes mortgages more complicated amid the economic damage of the coronavirus pandemic.

VIRUS AFTERMATH: While national, state and local officials are launching programs to help renters and shore up emergency assistance homeowners and mortgage lenders are trying to anticipate how the pandemic will change their landscape.

REASSURANCE: Treasury Secretary Steven Mnuchin offered reassurances on the stability of the U.S. mortgage market amid the coronavirus pandemic and the squeeze it has put on mortgage servicers.

RENT STRIKES: Rent strikes could wreak further havoc on an already stressed mortgage system. 

WILD RIDE: Mortgage applications took a wild ride in March. Here’s what to expect in future months.