Mortgage Roundup (4/20/20) – Forbearance, IMBs & Recovery

Good morning! Today is Monday, April 20. Democrats and the White House are close to a deal to help small businesses hurt by the coronavirus. Shake Shack plans to return its $10 million paycheck protection loan after getting needed capital on its own. Neiman Marcus is preparing to seek bankruptcy protection this week.

And in mortgage and housing news …

GSE FORBEARANCE: FHFA Director Mark Calabria appears to have misjudged the number of mortgages projected to be in forbearance.

INDEPENDENT MORTGAGE BANKS: The lending business was significantly more profitable for independent mortgage banks in 2019, though 2020 is going to be another story. 

LUMP SUM: Realtors are advising clients that they may owe missed monthly payments in a lump sum at the end of the forbearance period.

HOUSING COUNSELORS: Coronavirus forbearance revives interest in the dormant Hope LoanPort – a nonprofit that had helped provide foreclosure alternatives after the Great Recession. 

CARES ACT: What the federal coronavirus relief bill means for mortgages, credit and 401(k) loans. 

CONGRESSIONAL ACTION: Rep. Ilhan Omar introduced legislation that would cancel rent and mortgage payments for Americans during the coronavirus pandemic. The bill would also create a fund for landlords and mortgage holders to cover losses from the canceled payments.

PAYING OFF MORTGAGE:  Contrary to perceptions, having a shorter mortgage or paying more than the minimum is one of the riskiest things you can do for your finances

RECOVERY: Treasury Secretary Steven Mnuchin says he believes the economic recovery from the coronavirus outbreak will come in a matter of months, not years as some have predicted.