Spencer Levy, CBRE head of research, joins 'Power Lunch' to discuss how the coronavirus pandemic will and is affecting the commercial real estate industry.
Millions of borrowers may be unable to pay their mortgages as the coronavirus continues to crush the U.S. economy. But there is a government back-up plan. The CARES Act just signed into law allows borrowers to skip payments for up to a year and then have those payments tacked on to the end of their loans.
There’s one hitch: the $2 trillion stimulus package states that borrowers need not provide any proof of financial hardship. They can simply say they can’t pay.
In an interview Wednesday, the chief regulator of mortgage giants Fannie Mae and Freddie Mac, FHFA Director Mark Calabria, begged borrowers to be honest.
“We’re operating on the honor system. We are asking and we’re putting together a script for servicers. This is supposed to be limited to if you’ve lost your job, you’ve lost income. Please, if you haven’t lost your job, continue paying. If you can