Sincere question: How can the government order banks to waive mortgage payments for unemployed?

[Kurt_and_Hunter]

I have read a couple of articles about the new mortgage program and seen some stories on TV and I haven't seen any discussion of how such a plan could be.

I am all for the policy. But where does the authority come from? I don't know any way the Executive branch can just order a bank to suspend mortgage payments. (Which is to say, to amend a contract between two private parties extrajudicially... outside a court.)

Encourage, incentivize... sure. But this thing is framed as "ordered" and "required"

Are we talking about proposed legislation or what?

Sometimes the executive has surprising powers under law, like in labor disputes. I never really understood 1970s wage and price controls but assume they were implemented under some law. (As opposed to an intrinsic constitutional authority that the President gets to say what a loaf of bread should cost.) But I don't know what law from which this particular authority might be derived.

Does anyone have insight into this?

Thanks

[RagAss]

1. Tanks.

[DCKit]

2. I think the alternative is re-regulation, investigations and, eventually, jail time. n/t

[jody]

3. " How can the government order" anyone? Easy if govt is republican in name only as guaranteed by our...

Constitution.

As long as voters keep electing the same useless senators and congresspersons who rubber stamp rogue presidents then We the People are in a death spiral.

[Xenotime]

4. Because they have a controlling interest in them.

[msongs]

5. the government prints money that has no value whatsoever so why not nt

[ProgressiveProfessor]

6. I've been asking the same thing for some time

Banking rules are in many ways more intricate that tax laws. A friend in the banking (credit union pres) commented to me that if the executive branch wants it, a way will be found.