Homeowner advocacy groups call for more help with mortgage forbearances during pandemic

Millions of Americans have fallen behind on their mortgage payments because of the coronavirus pandemic, and now some are calling on Congress to do more to help struggling homeowners.

“Calls come in daily from homeowners who are exhausted, paralyzed by fear,” said Marcia Griffin, founder and president of HomeFree-USA.

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“It seems that this, like many other things, is having a disproportionate impact on persons of color,” said Rep. Al Green (D-Texas).

The CARES Act gives protection to people with federally-backed mortgages. It said homeowners affected by the pandemic must be approved for a forbearance that lasts up to 180 days.

Green said some servicers haven’t been complying with the requirements.

Testimony on Capitol Hill Thursday called for more consumer outreach so that homeowners are informed about their options.

“Require all services to have dedicated toll-free lines staffed with representatives who are knowledgeable about their forbearance procedures,” said Donnell Williams, from the National Association of Real Estate Brokers.

The CARES Act does include requirements for private mortgage servicers, and some are calling on Congress to change that moving forward.

“Expansion of CARES Act protections must include standardized forbearance for all mortgages, automatic forbearance for borrowers who have missed two payments or more,” said Alys Cohen, an attorney for the National Consumer Law Center.

Republicans cautioned against putting a mandate on private mortgage companies.

“It actually has the potential to further disadvantage borrowers by limiting their options,” Rep. Andy Barr (R-Kentucky).

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