![]() If the coronavirus has you worried about your mortgage, do these three things Coronavirus will impact Detroit’s housing market. If there is a wave of non-payment, they could be in for a severe cash crunch-up to $100 billion or more. But according to the Detroit Free Press, nonbank lenders have to advance payments to investors who own the mortgages. Many of the loans issued by Quicken are backed by the federal government. The business is a huge revenue-generator for the family of companies that includes Bedrock Detroit-the largest employer in the city. Quicken Loans, the Detroit-based lender owned by Dan Gilbert, was on track to issue $140 billion in mortgages in 2019. Moreover, the federal government announced a moratorium on foreclosures for homeowners with mortgages backed by Fannie Mae or Freddie Mac, and Federal Housing Administration mortgages on single-family homes.Īccording to the Wall Street Journal, this sudden cessation of payments will force lenders to come up with tens of billions of dollars on short notice. With the spread of the novel coronavirus (COVID-19) closing businesses and adding hundreds of thousands to the ranks of the unemployed, countless borrowers will be unable to pay their mortgages.
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