Economics
Trump Considers Letting Homeowners Delay Mortgage Payments
- Borrowers hurt by coronavirus would get a break on their bills
- Bankers, Trump administration working out how to pay investors
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The Trump administration is considering a plan to allow homeowners whose income was cut by the coronavirus to delay mortgage payments. Still to be decided is a mechanism for borrowers to catch up.
The government also will have to determine how to advance money to mortgage servicers so that investors in mortgage-backed securities get their guaranteed payments. “Tens of billions” in short-term financing may be needed, said Michael Fratantoni, chief economist at the Mortgage Bankers Association. Other real estate-related trade groups also are involved in the discussions.