Will FHFA pandemic-related losses of $6 bill affect REinvestors?

[David Ginsburg]

•$4 billion in loan losses due to projected forbearance defaults
•$1 billion in foreclosure moratorium losses
•$1 billion in servicer compensation and other forbearance

It’s not 2008, but to me there is a smell of Déjà vu in the air. We are once again seen the words forbearance agreement, cash for keys, deed in lieu, and soon to come will be the short sales and REOs. The market has since seen its worst drop in value since the last recession only 12 years ago.

Not to mention, the additional 0.5% on refinance government mortgages mandated by the Federal Housing Finance Agency (FHFA) on all Fannie and Freddie Mortgages will raise the costs for average income families in these crazy pandemic times.

How do you see the many jobs losses, raised borrowing costs, non paying tenants leading to unpaid rents and higher vacancy rates turning the difficult market condition into a new wave of Real Estate opportunities?