Just over 3.4 million borrowers, representing 6.4% of all mortgages outstanding, are now in forbearance plans. That’s an increase of 477,000 loans in just one week, or a nearly 9% jump, according to Black Knight, a mortgage data and analytics firm, which is running weekly tallies. These forbearances represent $754 billion in unpaid principal and include 5.6% of all Fannie Mae and Freddie Mac loans and 8.9% of all FHA/VA loans. Source: https://www.cnbc.com/2020/04/24/mortgage-bailout-balloons-by-half-a-million-more-loans-in-one-week.html
How do you think this will play out?
52% of American renters say they are confident they will be able to pay full rent in May, compared to 69% who said they could in April, according to a new survey, but those numbers could change as more federal stimulus checks hit bank accounts.
63% of renters said they have suffered income losses related to Covid-19.
A significant percentage of renters plan to move within six months.
It seems as if everyone believes that all these jobs are still there waiting for everyone to return.
The big question is what % of these jobs have vanished forever or been replaced by efficiencies or permanent changes in behavior?
Another point is that these numbers do not represent ALL of the unemployed. Evidently many cannot get in to actually apply or even worse are not eligible for some technicality.
There is a lot of disinformation on the net claiming Covid-19 will only be a minor setback and the job losses are temporary. These so economic "analysts" are basing their opinion not based on facts. Social distancing and half lock down cities will become the norm until a vaccine is out. Which means nothing is returning to normal until mid next year the earliest.
In that time frame we will continue to see a huge job loss not just in retail workers, but small business owners. Small businesses make up 44% of the US economy.
The Fed has come out and stated the Economy will not be back to pre-paramedic levels until 2022. The fed is rarely the bearer of bad news, which means there is a possibility it may take longer for a full economic recovery.
How does this affect the real estate prices? It's hard to say because The Fed has infinite capital and their decisions will dictate the real estate market. What I do know is the federal reserve wants inflation to keep the GDP growth which would include the real estate market.
via .ORGWorld News
By Money & Finance
Between 13,250 people and 26,500 people could be out of a job
So said the third-largest bank in the U.S. yesterday.
The what: The bank said it'llÂ cut 5% to 10%Â of its employee headcount over the next three years. Wells Fargo (+0.60%) currently has about 265,000 employees, meaning between 13,250 people and 26,500 people could be out of a job.
The why:Â It's part of Wells Fargo'sÂ ongoing turnaround plan. Remember, Wells (which has $1.9 trillion in assets) isÂ stillÂ recovering from a series of scandals in the past two years. In justÂ oneÂ example, branch employees opened millions of fake accounts in customers' names to meet sales targets.
+ While we're here:Â It's been a tough week all around for Wells CEO Tim Sloan. His team had toÂ deny rumorsÂ that former Goldman Sachs exec (and former member of the Trump admin) Gary Cohn would be replacing Sloan atop Wells Fargo.
via TheWorldNewsOrgWorld News
Wells Fargo employees opened roughly 1.5 million bank accounts and applied for 565,000 credit cards that may not have been authorized by their customers, regulators said. Credit Eric Thayer/Bloomberg