American Homeowners Grab at Mortgage Forbearance During Lockdown

(Bloomberg) — Almost 6% of U.S. mortgage borrowers have stopped making their payments following the passage of the CARES Act, which allows for easy forbearance.

The share of home loans in forbearance jumped to 5.95% during the week ended April 12, up from 3.74% the previous week, according to a survey from the Mortgage Bankers Association. Only 0.25% of all loans were in forbearance during the week of March 2.

Home loans backed by Ginnie Mae, which are issued to riskier borrowers, again showed the largest weekly growth, with the share in forbearance climbing 2.37 percentage points to 8.26%. However, loans backed by Fannie Mae and Freddie Mac increased almost as fast — by 2.20 percentage points — to 4.64%.

Over 22 million Americans have filed for unemployment benefits in the past four weeks with the virus battering the economy. The government is requiring lenders handling payments on taxpayer-backed loans

Read More

New Model Shows How Deadly Lifting Georgia’s Lockdown May Be

Photo Illustration by Lyne Lucien/The Daily Beast/Getty
Photo Illustration by Lyne Lucien/The Daily Beast/Getty

Gov. Brian Kemp’s aggressive scheme to lift Georgia out of COVID-19 lockdown may cost many thousands of lives, according to models prepared by epidemiologists and computer scientists at Harvard and the Massachusetts Institute of Technology in partnership with The Daily Beast.

The findings come as governors across the United States aim to restore economic activity following months of pandemic-related infections and over 50,000 deaths—a number widely understood to be an undercount. Meanwhile, over 26 million Americans have filed for unemployment benefits in recent weeks, a number that is itself a likely undercount of the economic toll.

Georgia’s Kemp has perhaps been the boldest of any governor about moving on, issuing a pair of executive orders allowing fitness centers, tattoo and massage parlors, bowling alleys, and hair salons to reopen last Friday with some mitigation measures. Other businesses, like restaurants and theaters, began

Read More