Mortgage Industry News
« Return to Mortgage Industry News
Pandemic Throwing Millions into Rent, Mortgage, and Student Loan Peril
Friday, October 16, 2020
The pandemic is endangering
the credit histories of at least 30 million Americans and possibly threatening
the shelter status of many of them. The Mortgage Bankers Associations' (MBA's) Research
Institute for Housing America (RIHA) said on Friday that over 6 million households
missed making rent or mortgage payments in September and 26 million individuals
did not make payments on their student loans. The number of
missed payments for rent and mortgage payments did decline slightly from the
second quarter but 2.82 million households failed to pay their rent on time and
in full in September while 3.37 million homeowners missed, delayed, or made a
reduced mortgage payment. These numbers represent 8.5 percent of the renter
population and 7.1 percent of homeowners. The share of student debt borrowers
who missed a monthly payment has remained at 40 percent since May. "Rent and mortgage
payment collections improved over the summer as more people went back to work,
but high unemployment continues to place hardships on millions of U.S.
households. There is growing concern that absent a slowdown in the number of
coronavirus cases and another round of much needed federal aid, millions of
households in the coming months face the prospect of falling further behind,"
said Gary V. Engelhardt, Professor of Economics in the Maxwell School of
Citizenship and Public Affairs at Syracuse University. "With the current
eviction moratorium expiring in January, the situation could be even more
challenging for renters. Many renter households across the country could find themselves
with no place to live and no means to repay missed payments."
Read Full Article