MBANow: MBA SVP Mike Flood Discusses Rental Assistance

Mortgage Bankers Association Senior Vice President of Commercial/Multifamily Mike Flood joined MBANow to discuss the CARES Act’s unemployment benefits and rental assistance.

Flood said 95 percent of apartment renters have been able to pay their rent through the crisis. “We’ve found that enhanced unemployment benefits plus the direct check turned out to be good compensation for salary,” Flood said.

But Flood noted those benefits expired on July 31. “In our minds, the most efficient way to help apartment tenants–and therefore the entire finance chain–is rental assistance,” he said. “The thought is that if you provide rental assistance to the tenant, they can keep a roof over their head. Then they use their unemployment benefits to feed their family and for other necessities. In turn, the borrower takes comfort that the apartment will be paid for and the property c, and the lender knows that the loan will stay current.”

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