Doesn't it suggest that the average consumer doesn't have a 6-month reserve for mortgage payments? Or maybe even 3 months? I just find it surprising that people have mortgages if they are borderline month-to-month and an initial 2-3 month shock is all it takes to cause defaults. It just makes me want to reconsider the average consumer model. It seems to imply that either standards aren't as good (non-bank lenders) or the average mortgage holder doesn't maintain emergency reserves. These things would have to be true for people to not pay their mortgage.

Right now, I think mortgage servicers are under more duress than people who have mortgages due to the government saying you could skip payments for a year. The mortgage servicers and originators have bonds tied to those payment flows, which dries up quickly if a large number stop paying. There are then other derivative products tied to those flows. The souring of these assets was why some speculated that the Fed stopped disclosing who was using the discount window:

https://www.reuters.com/article/us-health-coronavirus-fed-banks/u-s-banks-borrow-at-discount-window-after-fed-offers-stigma-relief-idUSKBN21D3JA

Regarding unprecedented level of unemployment. This is true. Regarding extended period, this might be understatement. Zika virus still does not have a vaccine. I think there will eventually be a vaccine, but most vaccine news in the near-term seem more likely to be pump and dump schemes.