Covid Housing Relief, Forever
June 05, 2023 by The article critiques the Federal Housing Administration’s (FHA) “Covid recovery” program, which aims to reduce mortgage payments and cover arrears for struggling borrowers. Initially, Congress allowed a pause on payments for homeowners with federally backed mortgages, but this has been extended multiple times. The new FHA plan covers late payments and up to 25% of monthly mortgage costs for five years, repayable upon selling or refinancing the home. Critics argue this delays foreclosures, props up housing prices, and risks taxpayer money if the housing market worsens. The program, running until 2028, relies on uncertain future lower interest rates.