In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses why forbearance has become a scarlet letter on consumer credit reports.For some background on the story, here’s a brief summary of the article:Mortgages in forbearance as a result of COVID-19 have to be reported as “current” on credit reports.That’s the law, as laid out in Section 4021 of the CARES Act passed by Congress at the end of March. It says servicers “shall report the credit obligation or account as current.”But, it turns out there’s a workaround that can make it difficult for people with mortgages in forbearance to get another home loan after the COVID-19 crisis is over – for as long as a year after the forbearance period ends. That can impact their ability to refinance or buy a home when times are better.The CARES Act doesn’t mention the comments section of credit reports, and that’s where forbearance notations are going. Any reference to forbearance on a credit report, including in the comments section, can be a “scarlet letter” for an applicant hoping to get a new mortgage, said David Stevens, the former head of the Mortgage Bankers Association who is now CEO of Mountain Lake Consulting.Following the main story, HousingWire Digital Producer Alcynna Lloyd covers a report from Realtor.com that claims the housing market will bounce back this year, data from Avail that indicates the number of incomplete rent payments has risen 93% during the COVID-19 pandemic, and the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, which reports an uptick in purchase demand.The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.HousingWire articles covered in this episode:Forbearance becomes a ‘Scarlet Letter’ on credit reportsRealtor.com: Housing market will bounce back this year, but the rebound will be short-livedNumber of incomplete rent payments rise 93% during pandemicMortgage applications for home purchases increase