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Expiring Covid Mortgage Relief Raises Fears of Foreclosure Surge

May 20, 2021, 10:30 AM

The large volume of home loans coming due this year, after pandemic-related payment suspension programs expire, has regulators and consumer advocates concerned about a possible wave of foreclosures.

The 2020 CARES Act allowed homeowners who had job losses or other economic hardship due to the Covid-19 pandemic to enter into forbearance plans that suspended mortgage payments for up to 18 months. Around 1 million of those forbearance plans are set to expire, beginning in August.

In response, the Consumer Financial Protection Bureau has proposed a foreclosure moratorium until the end of 2021. The agency has warned mortgage servicers—which handle payments, ...

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