Forbearance applications don’t forgive loans: Households still are obligated to pay skipped costs

Brand new CARES Work try a big financial package meant to bring financial recovery to U.S. households when you look at the COVID-19 pandemic. Significantly, this rules has actually enabled being qualified house having federally backed mortgage loans to request financial forbearance, hence reduces or pauses monthly mortgage payments. step one

That it article data the fresh perception of the CARES Operate forbearance strategies and you can investigates if so it save helped brand new recovery on COVID-19 credit crunch. 2 I show that, as opposed to into the past recessions, aggregate mortgage delinquency costs on the credit history failed to increase during the the new 2020 market meltdown.