This is potentially big: Fannie Mae and Freddie Mac may allow people mortgage forbearances (i.e. skip payments) if they can prove unemployment interfered with their ability to pay their mortgages.
This will undoubtedly help people who are jobless and financially struggling. There’s no question about it. But here’s the question: What does it do to the economy and housing market in general? Does it simple delay the foreclosure day of reckoning? Will the housing market improve, thus helping the economy, or does it merely prolong the agony, thus hurting the economy? Close call on both counts.
It’ll be interesting to see how this plays out.