Intermediation frictions in debt relief: Evidence from CARES Act forbearance

• 成果类型: Article
• 署名作者: Kim, You Suk; Lee, Donghoon; Scharlemann, Tess; Vickery, James
• 署名单位: Federal Reserve System - USA; Federal Reserve System Board of Governors; Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2024.103873
• 发表日期: 2024
• 关键词: Mortgage Forbearance Liquidity Nonbank CARES Act COVID-19

摘要

We study how intermediaries - mortgage servicers - shaped the implementation of mortgage forbearance during the COVID-19 pandemic and use servicer-level variation to trace out the causal effects of forbearance on borrowers. Forbearance provision varied widely across servicers. Small servicers, nonbanks, and especially nonbanks with small liquidity buffers, facilitated fewer forbearances and saw a higher incidence of forbearance related complaints. Easier access to forbearance substantially increased mortgage nonpayment but also reduced delinquencies outside of forbearance. Part of the liquidity from forbearance was used to reduce credit card debt, but most was saved or used for nondurable consumption.