COVID-19 and the Mortgage Market

For many of us, the scale of the coronavirus crisis reminds us of 9/11 or the 2008 financial crisis—the events may reshape people’s behavior in a long-lasting way. As the event continues to unfold, we’ve found ourselves in uncharted territories. In this article, we will address some policy changes related to the U.S. mortgage market and our model changes as well as a few tuning parameters that can be used to adjust our U.S. mortgage prepayment model to reflect the potential impact of COVID-19.