FHFA: COVID-19 U.S. Mortgage Performance Analysis
February 2, 2021
Since March, the United States experienced a surge in job losses that has created a concern about the ability of homeowners to pay their mortgages. One way of measuring homeowners’ ability to make their mortgage payments in the current environment is to calculate the incidence of past-due mortgages. Congress passed the CARES Act in March , allowing most mortgage borrowers to skip their normal required monthly mortgage payments without harming their consumer credit score or showing their mortgage as past-due in their credit report.  Borrowers taking advantage of this provision were also allowed to freeze the past due status of their mortgage at the level it was at when the Act was passed. This meant that most mortgage borrowers who were current when the Act was passed could skip future payments without showing their mortgage as past due in their credit report.
The data presented in the figure below, drawn from the National Mortgage Database (NMDB®) sponsored by FHFA and CFPB, show the national impact of these components of the CARES Act. The data shown are based on what the past-due status of mortgages reported to the credit bureaus would be if a credit report were pulled for every borrower on the last day of the month.