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It's summer 2021, and America is in the emerging
aftermath of a global pandemic that ignited in 2019 and
blazed through 2020. As the industry works to return to
normal as well as prepare for the challenges ahead, it will be
up to industry experts to adapt and lead while also navigating
unfamiliar terrain.
Housing survived and thrived through
2020, even as unemployment and economic
devastation swept the nation, due in large
part to unprecedented government support.
However, federal responses to the pandemic,
policy updates, and changes in leadership
rattled the mortgage finance world, and
pundits suggest we brace for aftereffects in the
weeks, months, and years to come.
EXPECT THE BEST, PREPARE FOR
THE WORST
It is important to remember that there
were two significantly different tales told
by Americans during the height of the
coronavirus pandemic, says Ron Haynie,
SVP Housing Finance Policy, Independent
Community Bankers of America. Some
transitioned to remote work and never missed
a beat. Others struggled mightily, becoming
ill or losing jobs, and for that second group,
COVID-19-related forbearance programs and
their multiple extensions were lifesaving and
unprecedented.
"e financial crisis of 2007-2010 wasn't
like this. You didn't have Fannie Mae and
Freddie Mac and FHA and VA, everyone,
including Congress, mandating forbearance
for borrowers who are struggling to pay their
mortgages," Haynie said. "It looks like we
learned something from that."
e latest Black Knight report on
forbearance activity shows 2.18 million
homeowners utilizing the programs, with June
expirations numbering about 830,000.
Haynie points out that people have been
transitioning out of forbearance every day,
so while we could see a bubble, there is not
Cover Story By: Christina Hughes Babb
A STRATEGIC
APPROACH
With the end of forbearances on the horizon, what should the industry expect from
government leadership in the months ahead? Policy experts weigh in.
