As the nation’s economy continues to suffer from the impact of the new pneumonia Epidemic, 2.7 million homeowners have stopped paying their mortgages, and the number is likely to continue to increase in the coming months; economists are concerned that the rate of delayed mortgage payments will rise across the United States.
Homeowners are back to paying their mortgages as an important economic indicator. Between June and November last year, the percentage of homeowners who paid their mortgages late dropped steadily, representing people’s return to the workplace and the beginning of economic activity. However, the good times did not last long, from November, the epidemic that was slowing down resumed, and the percentage of late payments remained almost flat and did not fall again.
According to the National Mortgage Bankers Association (MBA), the percentage of late mortgage payments has remained flat at 5.5% in recent months. At the peak in June, about 4.3 million homeowners applied for mortgage relief (forbearance plan).
Other economic indicators also show that the economic recovery has slowed since the winter, and households are facing greater financial pressure. The number of job openings declined, total retail sales fell for the third consecutive month, and the number of people applying for unemployment benefits remained flat.
Ralph McLaughlin, chief economist of Haus, a housing finance start-up, said, “As the economic recovery slows and more people apply for unemployment benefits, we expect more people to apply for mortgage forgiveness.
According to Black Knight, a mortgage data company, about 75 percent of the nation’s mortgages are covered by the government; the Cares Act, passed after the outbreak, allows homeowners to defer payments for up to 12 months.
Andy Walden, Black Knight’s director of market research, said, “It’s still a big unknown how many homeowners will be able to start paying their mortgages and how many will need additional assistance.
Among homeowners whose mortgage relief expired at the end of December last year, only 35 percent ended the relief program in the first week of January, representing the majority of homeowners who had to extend their relief and were unable to start paying their mortgages.
Dean Lemieux, a 51-year-old Alabama resident, used to earn a good income as a project manager in the petrochemical industry, but lost his job when oil prices bottomed; he and his wife put up their savings to make mortgage payments until December, when the relief was passed.
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