COVID-19 Mortgage Forbearances: Drivers and Payment Behavior

McManus, Douglas A.; Yannopoulos, Elias

doi:10.3905/jsf.2021.1.120

Cited by 7 publications

(2 citation statements)

References 7 publications

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“…Moreover, our paper examines the importance of forbearance in helping mortgage borrowers avoid or recover and exit delinquency. As such, we add to the literature about the effectiveness of various elements of the loss mitigation toolkit ( McManus and Yannopoulos 2021 ). We also contribute to the limited literature comparing single borrowers and coborrowers.…”

Section: Introductionmentioning

confidence: 99%

Single borrowers versus coborrowers in the pandemic: Mortgage forbearance take-up and performance

Zhu

Goodman

2023

Journal of Housing Economics

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Section: Introductionmentioning

confidence: 99%

Single borrowers versus coborrowers in the pandemic: Mortgage forbearance take-up and performance

Zhu

Goodman

2023

Journal of Housing Economics

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“…Finally, we contribute to a growing body of research about the mortgage market and consumer credit markets more generally during the COVID-19 pandemic. 6 An et al (2021), Cherry et al (2021), Capponi et al (2021), andMcManus andYannopoulos (2021) study mortgage forbearance during the pandemic. Agarwal et al (2021) show that savings from refinancing during the pandemic are more skewed toward higher-income borrow-ers than in earlier refinancing waves.…”

Section: Introductionmentioning

confidence: 99%

How Resilient Is Mortgage Credit Supply? Evidence from the COVID-19 Pandemic

Fuster¹,

Hizmo

Lambie‐Hanson

et al. 2021

FEDS

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We study the evolution of USmortgage credit supply during the COVID-19 pandemic. Although the mortgage market experienced a historic boom in 2020, we show there was also a large and sustained increase in intermediation markups that limited the pass-through of lowrates to borrowers. Markups typically rise during periods of peak demand, but this historical relationship explains only part of the large increase during the pandemic. We present evidence that pandemic-related labor market frictions and operational bottlenecks contributed to unusually inelastic credit supply, and that technology-based lenders, likely less constrained by these frictions, gained market share. Rising forbearance and default risk did not significantly affect rates on “plainvanilla” conforming mortgages, but it did lead to higher spreads on mortgages without government guarantees and loans to the riskiest borrowers. Mortgage-backed securities purchases by the Federal Reserve also supported the flow of credit in the conforming segment.

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