FHA Borrowers Offered New Option for Catching Up on Loans

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Posted To: MND NewsWire

The Federal Housing Finance Agency (FHFA) and both GSEs (Fannie Mae and Freddie Mac) have announced a new option for homeowners in COVID-19 forbearance plans , to eventually return their mortgages to performing status. As part of the CARES Act, a borrower in financial stress because of the pandemic can request forbearance, a pause or reduction in their monthly mortgage payment. The missed payments will have to be paid back by the borrower after the forbearance ends and FHFA and the GSEs have offered several options including repayment plans, loan modifications, or reinstatement although they have repeatedly stressed that no borrower will be required to make such a lump sum payment of the arrearage. The new option is payment deferral. This will allow borrowers, once they are able to return to…(read more)

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