Another 1.3M Americans File for Unemployment

Re:Another 1.3M Americans File for Unemployment by charwalker on Thursday July 16, 2020 @01:13PM (#23861146)

I work within a financial institution (CU) and I can say they have no wish to actually evict/foreclose/etc. After the 2008 crash they bumped their reserve % 3-5 points higher than required to insulate from the next recession (here today). But for mortgages, internal notices appear to suggest it's better for the CU if they keep people in their homes and have the same level of payments resume in a few months vs auction the house. Maybe the math only works out for a few months, I'm not in the loop on those conversations. They are very community focused and not driven by profit so that helps me trust the internal news.

As someone wanting a home in a high CoL area, I would love a 10-20% off rush from thousands of houses going to auction or sale but it wold be devastating locally. We simply are not equipped, as a nation, to address the fallout from this years events. Especially not with current (lack of) leadership and circling of wagons.

[ Parent | on HN ]

Re:Another 1.3M Americans File for Unemployment by paulmd on Thursday July 16, 2020 @02:11PM (#23861927)

I think local credit unions are a bit different than banks. I don't think JP Morgan or whatever would probably give that same consideration.

But I do take your point that banks don't necessarily want to immediately boot everybody out, foreclose, and crash the market at a time when potentially not a lot of people are buying.

Do bear in mind that the Fed has injected a shit-ton of cash into the market right now, and there actually would be more buyers than you think - it's just that they would be rental companies looking for more assets to snap up at firesale prices.

[ Parent | on HN ]