Coronavirus Stimulus Bill To Help Consumers And Homeowners

 BREAKING NEWS: The Coronavirus Stimulus Bill To Help Consumers And Homeowners

What does Coronavirus Stimulus Bill mean to help consumers and homeowners

Stocks are surging on news the Coronavirus Stimulus Bill was passed in the Senate. So what does this mean to American consumers and businesses?

  • The stock markets had winning days for the past three days
  • However, the mortgage markets are beyond chaos with uncertainty and fear
  • All non-QM wholesale lenders have suspended their operations and are no longer funding loans until further notice
  • The Coronavirus Stimulus Bill is having a very positive reaction on Wall Street
  • Will it have a similar positive reaction to the mortgage and housing markets?
  • Unemployment numbers came out this morning at all-time high numbers of 3.4 million
  • The coronavirus pandemic outbreak had hit the U.S. like a powerful tornado and have many Americans in shock
  • The great news is the coronavirus stimulus bill means checks coming your way to many Americans consumers and help for businesses

In this article, we will discuss and cover the breaking news of the Coronavirus Stimulus Bill To Help Consumers And Homeowners.

Coronavirus Stimulus Bill

The bipartisan coronavirus stimulus bill will help millions of consumers and businesses in the coming weeks during the coronavirus pandemic outbreak in the U.S. Michael Gracz of Gustan Cho Associates who has been following the mortgage and financial markets during the pandemic said the following:

The Phase One package provided $8.5 billion for coronavirus research, equipment, and vaccine development. The $1.3 trillion Phase Two package made coronavirus tests free. It also extended emergency paid leave, bulked up food assistance, and lengthened unemployment insurance coverage The Phase Three package will likely provide direct help to Americans through stimulus checks, small business payroll assistance, and unemployment benefits. A final vote has not yet been taken on the Phase Three stimulus package. So we can’t say what exactly will be included. But it seems clear that the legislation (if passed) will include more direct help for U.S. households then the previous two packages. 

The Trump Administration said Americans can be expecting their stimulus checks in two to three weeks via direct deposit to their bank account.

What To Expect From The Coronavirus Stimulus Bill

President Trump said American consumers should be expecting their stimulus checks in a few weeks.

  • The coronavirus stimulus checks should be millions of Americans who have been affected by this deadly contagious pandemic
  • Many Americans are out of work or are forced to work shorter hours
  • Not all Americans will be getting the stimulus checks
  • There are guidelines to receive stimulus money such as income caps
  • The uniform payments of $1,200 per person and $2,400 per married couple and $500 per child depending on the income level

Initial numbers that have been proposed are payments between $600 to $1,200 per person have been replaced with uniform payments of $1,200 per person and $500 per child.

How Much Will American Consumers Be Getting From The Government

How Much Will American Consumers Be Getting From The Government

The federal government has an estimated $350 billion allocated to issue checks to American consumers during the coronavirus pandemic.

  • This will be a one-time payment for people to cope with the financial hardship due to the coronavirus pandemic
  • Many consumers are still confused about how much of a check they will be getting by the federal government
  • Only individuals with an adjusted gross income of $75,000 or less will be receiving a $1,200 check
  • Or $2,400 for a married couple making $150,000 or less
  • Single taxpayers earning $99,000 or more will not be getting any checks
  • Married couples making incomes of $198,000 will not be getting any checks
  • A family of four will receive a maximum one-time payment of $3,400
  • Any incomes above and/or beyond the above levels will be adjusted and reduced
  • Americans will be getting the stimulus checks within 30 days
  • They can do anything they want with the checks
  • Many will use the funds to make mortgage payments, utilities, food, medical, and/or other essentials

The government imposed income caps because the government wants the stimulus money to be spent quickly by consumers and back into the economy. 

Aid To Local Businessowners

The coronavirus pandemic outbreak has devastated many local businesses.

  • A number of states had their governors shut down restaurants and bars with the exception of to-go purchases
  • Millions of restaurant workers have been laid off with uncertainty on when workers can get back to work
  • Many restaurants and bars are expected to go out of businesses if the shutdown order continues much longer
  • The National Restaurant Association estimates the hospitality sector will lose over $225 billion loss
  • A total of 7 or more million people is expected to lose their job in the restaurant industry in the next few months

Massimo Ressa of GCA Mortgage Group said the following:

The enormity of these shutdowns may create unemployment levels unseen since the Great Depression when a quarter of the workforce was jobless. Treasury Secretary Steven Mnuchin has said that unemployment might reach 20%, while James Bullard, president of the Federal Reserve Bank of St. Louis, estimates that unemployment levels could hit 30%. To help combat closures and layoffs, the Phase Three legislation contains an estimated $387 billion in payroll assistance. The idea is to keep people employed even if they are not working. The money will go to companies with fewer than 500 employees in the form of forgivable loans; that is, the loans need not be repaid if certain requirements are met. The program will allow small business owners to keep staff together and to quickly re-build once the virus passes. In effect, money for unemployment benefits and welfare will be redirected through small businesses. Workers will not have to file for unemployment if they can stay on the job.

Unemployment Numbers Hit Historic Highs

Why the number of unemployed reached historical highs

Today’s unemployment claims for the past week came in at 3.4 million.

  • This marks an all-time high in unemployment numbers claims
  • Under the Phase 3 stimulus bill, workers who have been laid-off will be receiving a flat $600 for up to a maximum of sixteen weeks

This is on top of other benefits under the coronavirus pandemic stimulus plan.

The Phase Three coronavirus stimulus bill also allocates:

  • $130 billion for over-extended local hospitals
  • $150 billion for state and local governments
  • $500 billion for distressed companies

President Trump and his administration are trying to do damage control over the US economy. This is hands down the largest emergency stimulus program in the history of our country.

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