Further processing options
available via Open Access

Intermediation frictions in debt relief: evidence from CARES Act forbearance

Saved in:

Bibliographic Details
Authors and Corporations: Kim, You Suk (Author), Lee, Donghoon (Author), Scharlemann, Tess (Author), Vickery, James (Author)
Other Authors: Lee, Donghoon [Author] • Scharlemann, Tess [Author] • Vickery, James [Author]
Type of Resource: E-Book
Language: English
published:
Series: Federal Reserve Bank of New York: Staff reports ; no. 1035 (October 2022)
Subjects:
mortgage
forbearance
liquidity
nonbank
CARES Act
COVID-19
Graue Literatur
Source: Verbunddaten SWB
Lizenzfreie Online-Ressourcen
Description
Summary: We study how intermediaries-mortgage servicers-shaped the implementation of mortgage forbearance during the COVID-19 pandemic and use servicer-level variation to trace out the causal effect of forbearance on borrowers. Forbearance provision varied widely across servicers. Small servicers and nonbanks, especially nonbanks with small liquidity buffers, facilitated fewer forbearances and saw a higher incidence of forbearance-related complaints. Easier access to forbearance substantially increased mortgage nonpayment but also reduced delinquencies outside of forbearance. Part of the liquidity from forbearance was used to reduce credit card debt, but most was saved or used for nondurable consumption.
Physical Description: 1 Online-Ressource (circa 69 Seiten); Illustrationen