The U.S. Department of the Treasury [1] released data pertaining to the Paycheck Protection Program (PPP) and revealed the real estate, rental, and leasing sector received $15.6 billion.
This represents 245,697 loans that are 3% of the total $521.4 billion in assistance delivered by the Treasury.
The Treasury added that the PPP supports 51.1 million jobs and as much as 84% of small business employees. Additionally, 13 million jobs were in Historically Underutilized Business Zones.
Health care and social services received the most funds from the Treasury, bringing in $67.3 billion in funds—nearly 13% of all the entire PPP loan amount.
Banks received $496 billion to assist with more than 48 million jobs. Fintechs and other state regulators received $4.7 billion for more than 500,000 jobs.
JPMorgan Chase was the nation’s top PPP lender, lending more than 269,000 loans that total more than $29 billion. Bank of America was a close second, dispersing more than $25 billion in loans. Wells Fargo loaned more than $10.4 billion.
The Treasury announced there is still an additional $131 billion in available funding.
COVID-19 has caused havoc on the housing and mortgage industries, as the latest information from Fitch Ratings [2] found new delinquencies rose on all loan types.
Non-prime loans experienced the greatest annual increase in delinquencies in June, rising 21.8%. Expanded prime loans charted the second-highest increase, a 12.2% rise. RPL loans experienced a 6.4% annual incline, while prime loan delinquencies rose 5.5%.
Another result of the coronavirus is the liquidity shortfalls experienced by servicers. In response to the pandemic, Ginnie Mae created the Pass-Through Assistance Program [3] (PTAP) in April to help servicers as well as taxpayers.
The PTAP has helped servicers by allowing them to offer flexibility to home loan borrowers during the financial crisis created by the pandemic. In May, Ginnie Mae also expanded PTAP to multifamily MBS.
Under PTAP, disruptions in payment do not qualify as a default.
As of June 10, Ginnie Mae [4] has forward more than $3 million in funds to five agencies.