Mortgage Bankers Report “Substantial” Missed Payments

With mortgage protections winding down and the federal eviction moratorium no longer in place, a “substantial” number of people are missing housing payments, according to the Mortgage Bankers Association.

As The Ascent reported Monday (Dec. 20), the Association says that 5.43 million households missed mortgage or rental payments in October, up from 4.7 million in the previous month.

Drilling down further, that means the percentage of homeowners missing mortgage payments rose from 3.2% in September to 3.8% in October, while 10.9% of renters either missed, delayed or made a reduce rental payment in October, up from 9.6% the previous month.

The story notes that many households still haven’t recovered from the financial affects to the COVID-19 pandemic, which contributes the rise in missed payments.

Inflation is only compounding the issue as Scott Sanborn, CEO of LendingClub, told PYMNTS’ Karen Webster last month.

Read more: Inflation, Disappearing Stimulus Payments Push Paycheck to Paycheck Consumer Ranks Higher

LendingClub’s research, conducted in concert with PYMNTS, found that the number of Americans living paycheck to paycheck is on the rise, from 52% earlier in the year to a more recent 57%. This is happening as a number of government support programs are waning.

It’s important to note that even without government programs in place, there are some options to keep a roof over one’s head, whether that means mortgage modifications — meaning your mortgage would be extended, lowering each monthly payment — or refinancing, something that typically requires a decent credit score.

Renters can also try to work with their landlords to come up with payment plans or negotiating reduced rents. As The Ascent noted, even though landlords can start evicting once again, doing so can be expensive and time-consuming — meaning some landlords might want to work out a deal rather than spend time trying to get their tenants out.