Can Mortgage Forbearance Help Stabilize the Economy?
Location: Online only
Speaker(s): Sean Lee
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was enacted in March 2020, allowed households with federally-backed mortgages to temporarily halt their payments for up to 18 months without facing fees or penalties. In this presentation, Sean Lee, a PhD candidate in Economics and a Meyer Fellow, will discuss research he conducted with Omeed Maghzian, also a PhD candidate at Harvard, assessing whether and to what extent these widely used provisions helped stabilize and stimulate economic activity. He’ll also discuss what the findings suggest about whether mortgage forbearance can promote macroeconomic stability during economic downturns.