Mortgage reserve accounts (MRAs) are designed to help households of color affected by the pandemic. MRAs provide an alternative source of income to enable households to pay their mortgages. Urban Institute has published the first comprehensive study of mortgage reserve accounts, which reveals the positive impact they can have on preserving homeownership among people of color.
The study found that MRAs help reduce foreclosures and delinquencies, allow borrowers to keep up with their payments, and protect credit scores. It also concluded that creating MRAs can provide additional savings for homeowners as well as more opportunities for debt restructuring or modification of the loan terms.
The most important elements of the text include:
• MRAs are designed to help households of color affected by the pandemic
• Urban Institute conducted first comprehensive study of MRAs
• Study found that MRAs help reduce foreclosures and delinquencies
• MRAs allow borrowers to keep up with their payments and protect credit scores
• MRAs provide additional savings for homeowners and opportunities for debt restructuring
You can read this full article at: https://www.housingwire.com/articles/mortgage-reserves-can-help-black-borrowers-sustain-homeownership-report/(subscription required)
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