Drip Drip better become a flood soon or Trump and conservatives are going to be taking lumps and being blamed for the damage until at least 2040. People are struggling and banks are gearing up to screw them. We have seen this movie before.
"The nationwide shutdown of the economy to slow the spread of COVID-19 continues to create hardships for millions of households, and more are contacting their servicers for relief in accordance with the forbearance provisions under the CARES Act," said MBA's chief economist, Mike Fratantoni. "With mitigation efforts seemingly in place for at least several more weeks, job losses will continue and the number of borrowers asking for forbearance will likely to continue to rise at a rapid pace."
Meanwhile, as we noted last night, JP Morgan is now raising borrowing standards for most new home loans as they move "to mitigate lending risk stemming from the novel coronavirus disruption."
Starting Tuesday, customers applying for a new mortgage will need a credit score of at least 700, and will be required to make a down payment equal to 20% of the home’s value (something which we thought was the norm after the last financial crisis, but apparently lending conditions had eased quite a bit in the past decade), according to Reuters.