Congressional stimulus falls short on mortgage relief, experts say

After much deliberation, Congress landed on an agreement for the next round of coronavirus aid on Sunday. The bipartisan bill will provide $25 billion in emergency rental assistance and a round of $600 stimulus checks, in addition to pushing the eviction moratorium out by a month to Jan. 31, 2021.

Following the announcement of the deal, housing and mortgage finance experts were quick to point out that the measure will not be enough to fully support the millions of Americans struggling to make housing payments. Nearly 2.8 million borrowers fell into active forbearance plans as of Dec. 15, an amount that's trended upward alongside rising COVID-19 cases.

"More will be needed to prevent housing insecurity for millions of low- and moderate-income households who are managing the economic fallout of the pandemic," David Dworkin, president and CEO of the National Housing Conference, said in a press release.

Dworkin, a former senior policy adviser at the Treasury Department under the Obama administration, also highlighted the need for the Treasury to fast-track regulations and directly distribute the funds to each state in order to get the money out quickly.

About 20.3% of borrowers who have missed mortgage payments think they'll likely face foreclosure is in the next two months, according to the latest Census Bureau's Household Pulse Survey ending Dec. 7. The outlook is bleaker for renters who are behind on payments, as 48.1% of that group said eviction is likely with a two-month time frame.

A 13.3% share of borrowers overall have little to no confidence in making their next mortgage payment. That number jumps to 32.7% for renters, according to the Census survey.

"We must make the most of this new federal package, but the conversation can't end here," said Real Estate Board of New York President James Whelan. "Elected officials and stakeholders across the spectrum must keep advocating for more of the federal aid needed to ensure a strong and equitable recovery for all New Yorkers — and this must continue to be top priority for the incoming Biden administration and the new Congress."