A combination of historically low mortgage rates and borrower forbearance agreements could cost mortgage companies upwards of $100 billion, according to the Mortgage Bankers Association.
"It’s going to be a liquidity tsunami," Jay Bray, CEO of Mr. Cooper, told the Wall Street Journal, according to The Real Deal.
"Mr. Cooper, along with Quicken Loans, is one of the largest such nonbank lenders, which have ramped up their involvement in the home loan market following the financial crisis," the article added.
With a hole that big, mortgage companies are looking to Congress and President Trump for relief in the form of a lending facility to pick up the shortfalls that they are facing.
To learn more about the deficit that mortgage companies could be facing due to the COVID-19 pandemic, click here.