Payment deferrals are a lifeline for millions during Covid-19. What happens when those end? nbcnews.to/2QGlsOt
#NBCNewsThreads (1/6)
#NBCNewsThreads (1/6)
The federal government's response to Covid-19 has allowed millions of Americans to defer payments on mortgages, rent, student loans and utility bills.
But payments on trillions of dollars of those debts could resume soon, even if debtors remain out of work. (2/6)
But payments on trillions of dollars of those debts could resume soon, even if debtors remain out of work. (2/6)
“At some point there is going to be an extraordinary number of people out there who are very vulnerable with debt, and we are going to have major debt collection issues," Harvard Law School professor Howell Jackson said. (3/6)
President Biden last month extended the foreclosure moratorium for homeowners and a program that allows homeowners to pause payments on their mortgages through June. Earlier, he extended the ability to pause federal student loan payments, affecting about 40M borrowers. (4/6)
"These periods of forbearance will eventually end" said David Silberman, the CFPB's associate director for research, markets and regulation through Feb. 2020.
"There could be millions of families unable to resume paying … who will struggle to put food on the table.” (5/6)
"There could be millions of families unable to resume paying … who will struggle to put food on the table.” (5/6)
Experts and Democratic lawmakers have repeatedly said the CFPB is uniquely equipped to help distressed borrowers deal with those outcomes. But that is only if Biden is able to rebuild the agency to give it some teeth. nbcnews.com/politics/joe-b… (6/6)
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