Trump Considering Plan to Let Homeowners Delay Mortgage Payments

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(Bloomberg) — The Trump administration is considering a plan to allow homeowners whose income was cut by the coronavirus to delay mortgage payments, according to the Mortgage Bankers Association. 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. The White House has been in touch with mortgage lenders to discuss their views on policy responses, according to an official who requested anonymity to speak about internal matters.

“This is so big,” Michael Fratantoni, chief economist of the Mortgage Bankers Association said. “We’re thinking of the potential of several months of payments for a lot of homeowners.”

The proposal could follow the model of previous forbearance programs after critical disasters, he said. Other real estate-related trade groups also are involved in the discussions.

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