The CARES Act provides much-needed relief to homeowners who are out of work as we navigate this pandemic. However, this is causing a unique problem for the servicers of their mortgages.

Thanks to the CARES Act, FHA and VA loan buyers can apply for mortgage forbearance for up to six months. This amount will get added on to the end of the principal balance, and I think it’s an elegant solution to keep people in their homes during this crisis. However, this causes a problem in the mortgage industry because the servicers of the mortgage are still responsible for paying the mortgage-backed securities and bondholders. To learn more about the problem that this is causing the mortgage world, watch the video above.