#Relief for Federally Backed Mortgage Loans in Forbearance

Updated: May 26, 2020

Great news for Federally Backed Mortgage Loans from Freddie Mac and Fannie Mae. This article announces that relief is offered as of July 1st. This news does not currently apply to Non Federally Backed Loans. Looking forward to answers from Non Federally Backed Loans and their Loan Servicer's on what can happen to payments in Forbearance.

Check these links to confirm if your loan is Federally Backed.

https://ww3.freddiemac.com/loanlookup/

https://www.knowyouroptions.com/loanlookup



Fannie Mae, Freddie Mac: Borrowers in forbearance can defer all missed payments until the end of their loan

GSEs unveil new payment deferral option for loans in forbearance

May 13, 2020, 5:52 pm By Ben Lane

With nearly 4 million borrowers in forbearance on their mortgage, we still don’t have a complete picture of what happens when forbearance periods end. Borrowers got some clarity on the situation last month, when Fannie Mae and Freddie Mac said that borrowers are not required to repay all their missed payments at once.

And as it turns out, borrowers in forbearance may not have to repay their missed payments at all until the end of their loan thanks to a new repayment option from the GSEs.

Fannie Mae and Freddie Mac announced Wednesday that they are rolling out a new payment deferral option for borrowers in forbearance.

Under the new program, borrowers who took forbearance due to a coronavirus-related issue will not have to repay their missed payments until the borrower sells their house, refinances their current mortgage, or their mortgage matures.

According to the GSEs and the Federal Housing Finance Agency, the deferral option is available to borrowers in forbearance who regain the ability to pay their mortgage on time. Under the program, the borrower simply starts making their mortgage payments again when they’re able and any missed payments are deferred to the end of their loan.

“For homeowners in forbearance due to COVID-19, payment deferral allows them to make up missed forbearance payments when they sell their home or refinance,” FHFA Director Mark Calabria said. “This new forbearance repayment solution responsibly simplifies options for homeowners while providing an additional tool for mortgage servicer's. Borrowers who can pay their mortgage should, because missed payments remain an obligation that will ultimately have to be repaid.”

The CARES Act stipulates that a borrower whose mortgage is backed by either the government or the GSEs who is experiencing a COVID-19-related hardship can request and must be granted forbearance of up to 180 days, which then may be extended for another 180 days.

The issue is that forbearance is not forgiveness, therefore borrowers in forbearance have to repay their missed mortgage payments one way or another.

The GSEs’ new payment deferral allows borrowers who took forbearance to shift as many as 12 months of mortgage payments to the end of their loan.

“This option is for homeowners who have completed a COVID-19 related forbearance plan and are able to continue making their full monthly contractual payment but cannot afford full reinstatement or a repayment plan to bring their mortgage loan current,” Fannie Mae said in a release.

According to Freddie Mac, the “COVID-19 Payment Deferral solution” reinstates a homeowner’s monthly mortgage payment to its pre-forbearance amount by adding up to 12 months of missed payments, including escrow advances, to the end of the mortgage term without accruing any additional interest or late fees.

Source: Housing Wire

#hardshipresource #helpinghomeowners #mortgageassistance #can'tpaymyhomeloan #gethelpnow

0 views0 comments

Recent Posts

See All

Mortgage Relief Options and Protections

Relief for all federally or GSE-backed mortgages Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and guidance from federal agencies and the GSEs, there are two protections for ho

Early Impact on Credit

Great Blog post from the Consumer Financial Protection Bureau on the Impact to Consumer Credit FOR IMMEDIATE RELEASE: August 31, 2020 MEDIA CONTACT: Office of Communications Tel: (202) 435-7170 CONSUM

© 2020 by Hardship Resource. The Cofini Group LLC- 1-833-8-COFINI

Get Social

  • Grey Facebook Icon
  • Grey LinkedIn Icon
  • Grey YouTube Icon

WEBSITE DISCLAIMER

 

The information provided by The Cofini Group LLC (“we,” “us” or “our”) on http://www.hardshipresource(the “Site”) is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site. UNDER NO CIRCUMSTANCE SHALL WE HAVE ANY LIABILITY TO YOU FOR ANY LOSS OR DAMAGE OF ANY KIND INCURRED AS A RESULT OF THE USE OF THE SITE OR RELIANCE ON ANY INFORMATION PROVIDED ON THE SITE. YOUR USE OF THE SITE AND YOUR RELIANCE ON ANY INFORMATION ON THE SITE IS SOLELY AT YOUR OWN RISK.

 

EXTERNAL LINKS DISCLAIMER

 

The Site may contain (or you may be sent through the Site) links to other websites or content belonging to or originating from third parties or links to websites and features in banners or other advertising. Such external links are not investigated, monitored, or checked for accuracy, adequacy, validity, reliability, availability or completeness by us. WE DO NOT WARRANT, ENDORSE, GUARANTEE, OR ASSUME RESPONSIBILITY FOR THE ACCURACY OR RELIABILITY OF ANY INFORMATION OFFERED BY THIRD-PARTY WEBSITES LINKED THROUGH THE SITE OR ANY WEBSITE OR FEATURE LINKED IN ANY BANNER OR OTHER ADVERTISING. WE WILL NOT BE A PARTY TO OR IN ANY WAY BE RESPONSIBLE FOR MONITORING ANY TRANSACTION BETWEEN YOU AND THIRD-PARTY PROVIDERS OF PRODUCTS OR SERVICES.

 

PROFESSIONAL DISCLAIMER

 

The Site cannot and does not contain financial literacy advice. The financial literacy information is provided for general informational and educational purposes only and is not a substitute for professional advice. Accordingly, before taking any actions based upon such information, we encourage you to consult with the appropriate professionals. We do not provide any kind of financial literacy advice. THE USE OR RELIANCE OF ANY INFORMATION CONTAINED ON THIS SITE IS SOLELY AT YOUR OWN RISK.

 

AFFILIATES DISCLAIMER

 

The Site may contain links to affiliate websites, and we receive an affiliate commission for any purchases made by you on the affiliate website using such links.