The Washington Post: Homeowners Are Getting Federal Mortgage Relief, But Renters Aren’t So Lucky

The Washington Post: March 2o, 2020, Homeowners Are Getting Federal Mortgage Relief, But Renters Aren’t So Lucky

HUD and other federal regulators have announced a moratorium on foreclosures and evictions for millions of Americans.

Federal officials announced a nationwide halt to foreclosures and evictions this week, protecting more than 30 million Americans from the risk of losing their homes as the coronavirus outbreak ravages the economy.

But the federal plans don’t cover more than 40 million renters, many of whom, housing advocates worry, may not be able to pay their rent next month.

This time, rather than mortgage delinquencies growing over time, it could spike suddenly as people suddenly find themselves without a job, said Jesse Van Tol, chief executive of the National Community Reinvestment Coalition.

The industry is asking lawmakers and the Federal Reserve to establish a liquidity facility for mortgage servicers to offset the costs of a lengthy downturn due to the crisis. If the pandemic lasts just six weeks and few borrowers need assistance, mortgage servicers should be able to shoulder the cost, Broeksmit said. But if the outbreak lingers and many borrowers ask for help, the situation could become unmanageable, he said.

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