Search Results

Showing results 1 to 5 of approximately 5.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:mortgage forbearance 

Forbearance during COVID-19: How Many Borrowers Used It, and for How Long?

Sixteen percent of individuals with mortgages used forbearance between April 2020 and December 2021. For those requesting mortgage relief, how long did forbearance last?
On the Economy

Working Paper
Household Liquidity and Macroeconomic Stabilization: Evidence from Mortgage Forbearance

We estimate the impact of household liquidity provision on macroeconomic stabilization using the 2020 CARES Act mortgage forbearance program. We leverage intermediation frictions in forbearance induced by mortgage servicers to identify the effect of reducing short-term payments with little change in long-term debt obligations on local labor market outcomes. Following statewide business reopenings, a 1 percentage point increase in the share of mortgages in forbearance leads to a 30 basis point increase in monthly employment growth in nontradable industries. In a model incorporating ...
Working Papers , Paper 23-12

Discussion Paper
Keeping Borrowers Current in a Pandemic

Federal government actions in response to the pandemic have taken many forms. One set of policies is intended to reduce the risk that the pandemic will result in a housing market crash and a wave of foreclosures like the one that accompanied the Great Financial Crisis. An important and novel tool employed as part of these policies is mortgage forbearance, which provides borrowers the option to pause or reduce debt service payments during periods of hardship, without marking the loan delinquent on the borrower’s credit report. Widespread take-up of forbearance over the past year has ...
Liberty Street Economics , Paper 20210521a

Working Paper
Inequality in the Time of COVID-19: Evidence from Mortgage Delinquency and Forbearance

Using a novel database that combines mortgage servicing records, credit-bureau data, and loan application information, we show that lower-income and minority borrowers have significantly higher nonpayment rates during the COVID-19 pandemic, even after controlling for conventional risk factors. A difference-in-differences analysis shows how much the pandemic has exacerbated income and racial inequalities. We then find that government and private-sector forbearance programs have mitigated these inequalities in the near term, as lower-income and minority borrowers have taken up the short-term ...
Working Papers , Paper 21-09

Discussion Paper
What Happens during Mortgage Forbearance?

As we discussed in our previous post, millions of mortgage borrowers have entered forbearance since the beginning of the pandemic, and more than 2 million remain in a program as of March 2021. In this post, we use our Consumer Credit Panel (CCP) data to examine borrower behavior while in forbearance. The credit bureau data are ideal for this purpose because they allow us to follow borrowers over time, and to connect developments on the mortgage with those on other credit products. We find that forbearance results in reduced mortgage delinquencies and is associated with increased paydown of ...
Liberty Street Economics , Paper 20210519b

FILTER BY year

FILTER BY Series

FILTER BY Content Type

FILTER BY Jel Classification

D14 2 items

G21 2 items

D12 1 items

D63 1 items

G23 1 items

G28 1 items

show more (3)

FILTER BY Keywords

mortgage forbearance 5 items

COVID-19 2 items

inequality 2 items

CARES Act 1 items

credit cards 1 items

debt relief 1 items

show more (5)

PREVIOUS / NEXT