Mortgage Relief Is Only for People Who Have Lost Jobs, Mnuchin Says
Source: Bloomberg
U.S. Treasury Secretary Steven Mnuchin said only homeowners who have lost their jobs because of the coronavirus crisis will qualify for new government programs that let borrowers put off mortgage payments.
If people dont have jobs and people have hardships, they can forbear, Mnuchin said in a CNBC television interview on Wednesday. If people do have jobs, we expect those people to continue paying mortgages.
The $2.2 trillion stimulus package signed into law last week lets homeowners and businesses hurt by the pandemic seek temporary relief from monthly mortgage payments. The legislation doesnt specify how consumers will be required to prove hardship. Mortgage servicers arent allowed to demand documentation from homeowners. Those borrowers will simply have to attest that theyre struggling, according to the text of the legislation.
Regulators including the Federal Housing Finance Agency and Department of Housing and Urban Development also have called for forbearance to be offered. FHFA Director Mark Calabria has said that the new rules are not meant to be a mortgage holiday, but are put in place only for borrowers who really need it.
Read more: https://www.msn.com/en-us/money/markets/mortgage-relief-is-only-for-people-who-have-lost-jobs-mnuchin-says/ar-BB121CCc?li=BBnbfcN
jimfields33
(15,954 posts)Id imagine every administration would go this route. Its just this one gets 99 percent wrong that everything is questioned due to their negligence.
gibraltar72
(7,512 posts)cstanleytech
(26,319 posts)just like what comes from his mouth.
Hoyt
(54,770 posts)Liberty Belle
(9,535 posts)What about the person who still has a job but their hours were cut way back?
What about small business owners forced to do takeout only or close down?
What about parents in critical jobs who must now pay for childcare because schools are closed?
What about people who have been hospitalized due to COVID-19 and have big medical bills, or maybe lost pay if they were absent longer than sick leave allows?
Or those who took unpaid leave to care for a sick relative or children at home?
What about independent contractors who have lost all or most of their work, such as freelance musicians and caterers depending on events? Wedding planners? Photographers?
dawn frenzy adams
(429 posts)Unfortunately, this is what you get when you put millionaires and billionaires in control of government. They don't have a clue about the needs of the working class.
cstanleytech
(26,319 posts)Progressive Jones
(6,011 posts)cstanleytech
(26,319 posts)like they did in France a few hundred years ago and it did not turn out well for a lot of the wealthy and powerful there.
Hoyt
(54,770 posts)Similar for the self-employed, etc.
Igel
(35,356 posts)This was discussed weeks ago.
You contact your mortgage servicing company.
You provide proof of reduced income. That's reduced hours. You're in the hospital and that's reduced income, you have reduced income. You need medical leave because sick leave doesn't cover it, that's reduced income.
Unpaid leave to take care of the sick (or the kids). Don't know. Talk to them.
Small business owners? It's a business. That's a different thing. But still, reduced income.
Take a deep breath. These people don't hate you, just on most days they don't think about you.
Additional bills? Never was included in mortgage. Same for daycare.
Gig people, that was discussed, don't remember. But since you're a small business ...
Hoyt
(54,770 posts)GulfCoast66
(11,949 posts)I get small business owners and those with cut hours may get left out. But we arent looking at a 2 year issue. By the time verification is done for people that still have an income this will all be over.
What make more sense if an order to suspend foreclosures and delinquency penalties until the virus is past. Nothing short of that will stop big lenders with huge cash reserves from seeing this an an opportunity. Get people who have a significant investment in their home so far in the hole they walk away and allow the lender to take it over only to br sold at obscene profits after this is over. The same thing happened in 09.
McCamy Taylor
(19,240 posts)This is a great opportunity for banksters.
Hoyt
(54,770 posts)other mortgage holders dont want a bunch of repossessed homes, especially when they cant sell them.
mahina
(17,697 posts)Get a paycheck because you need to keep your team employed and you cant afford to take a paycheck yourself but on top of that , you have to put lots of money in from the little youve been able to save during your lifes work. So would somebody in that kind of situation be able to file?
Well, the question is have you been working in the answer to that question is yes, Ive been working my ass off, but no I dont get paid, I have to pay in.
greenjar_01
(6,477 posts)What a fucking joke the Trump administration is.