Mortgage

Missed fee enhancements for lease, mortgage, pupil debt are slowing down

The decline in the number of tenants in trouble and those with school credit difficulties eased a bit in June from March, suggesting that the general trend of improving housing and education debt developments has continued but has slowed.

According to the Research Institute for Housing America, defaults for mortgage borrowers were down from 2.33 million in March to 2.19 million in June. During the same period, the outstanding payments for tenants rose from 2.56 million to 2.86 million. Arrears for student loan borrowers rose from 26 million to 28 million. However, these statistics include payments suspended by pandemic relief programs, some of which are being phased out. On average for all three months of the quarter, the missing payments in all three categories are still falling.

The numbers reinforce other signs that the recovery is not progressing quite as fast as expected. While economic recovery and temporary government support such as the more targeted extension of the eviction ban are likely to continue to drive improvements, challenges are the phasing out of wider support and increased risk from COVID-19 variants.

"There's still a downward trend, but it's slower," said Edward Seiler, vice president of housing for the Mortgage Bankers Association and executive director of the Research Institute for Housing America.

While the trend in the number of people in arrears on mortgages may seem slightly more favorable, as home loans represent relatively larger debts, they are still the second largest category of missing payments. Mortgages have accounted for $ 76.5 billion in defaults since the pandemic began. Student loans were $ 155 billion in arrears and rent added up to $ 41.7 billion in arrears.

Related Articles