With the coronavirus threatening the economy and forcing businesses to either telework or close, the housing finance system faces an upcoming slew of missed payments that will present a challenge. Banks are already facing borrowers who have been negatively affected by the crisis, but the extent of missed payments will remain largely unknown until the payments are due. “Lenders do not have the liquidity to allow borrowers to stop making payments,” said Dave Stevens, chief executive at Mountain Lake Consulting and the former head of the Federal Housing Administration. “What happens if everybody stops paying, which they will if given the option not to?”

Read more via American Banker.