Continuous forbearance mortgages save homeowners money and boost regional employment.
The study looked at how a special type of mortgage called continuous forbearance mortgages (CFM) could affect the housing market. CFM mortgages adjust payments based on the value of the home, potentially saving borrowers money. If all U.S. mortgages had this feature in 2006, borrowers could have saved money on their payments. This could have reduced mortgage defaults and had positive effects on regional employment.