Mortgage Firms Brace for Wave of Missed Payments as Coronavirus Slams Homeowners
By Andrew Ackerman
Mortgage companies are bracing for a severe cash crunch when Americans who lose jobs and income because of the coronavirus pandemic stop making payments on their home loans. The companies, such as Quicken Loans Inc. and Mr. Cooper Group Inc., expect a wave of missed payments from borrowers as early as next month that will force them to come up with tens of billions of dollars on short notice. …“We’ve seen this coming since at least 2016 as the agency market shifted to entities dependent on short-term liquidity, lacking any capital,” said Karen Petrou, head of Federal Financial Analytics, a regulatory advisory firm.