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Treasury: Mortgage Relief Only for Those Who’ve Lost Jobs

New programs to help homeowners with mortgage payments weren’t created for people who don’t need help – but they also don’t require lenders to confirm a job loss.

NEW YORK – New government programs offering mortgage relief are limited to people who are out of work due to the coronavirus pandemic, according to U.S. Treasury Secretary Steven Mnuchin. “If people do have jobs, we expect those people to continue paying mortgages,” Mnuchin said in a CNBC television interview on April 1.

The new $2.2 trillion stimulus package provides homeowners and business with temporary relief from monthly mortgage payments.

The legislation does not require mortgage servicers to demand that homeowners document their hardship, however.

“If people don’t have jobs and people have hardships, they can forbear,” Mnuchin said in a CNBC television interview on Wednesday.

Regulators, including the U.S. Department of Housing and Urban Development and the Federal Housing Finance Agency (FHFA), have been calling for forbearance to be offered.

The new rules are not meant to be a “mortgage holiday,” but are put in place only for borrowers who really need it, says FHFA Director Mark Calabria.

Source: Bloomberg (04/01/20) Dexheimer, Elizabeth

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