Hey Everyone,
I thought I would update you as to the most recent rules in regards to what happens after covid related deferral or forbearance. Please see below new information released:
Late yesterday, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac are making a new payment deferral option now available. The payment deferral option will allow borrowers, who are able to return to making their normal monthly mortgage payment, the ability to now repay their missed payments at the time the home is sold, refinanced, or at maturity. “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,” said FHFA Director Mark Calabria. “This new forbearance repayment solution responsibly simplifies options for homeowners while providing an additional tool for mortgage servicers. Borrowers who can pay their mortgage should, because missed payments remain an obligation that will ultimately have to be repaid.” In addition to the new payment deferral option, borrowers with COVID-19 related hardships can still utilize other options that include reinstatement, repayment plan, or loan modifications based on their individual situations. It’s reported that servicers will begin offering the payment deferral repayment option starting July 1, 2020.
When looking to refinance, the below is what we will consider and of course parts are still unknown at this time:
Please feel free to e-mail me at [email protected] for any questions or at 619-379-8999
I thought I would update you as to the most recent rules in regards to what happens after covid related deferral or forbearance. Please see below new information released:
Late yesterday, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac are making a new payment deferral option now available. The payment deferral option will allow borrowers, who are able to return to making their normal monthly mortgage payment, the ability to now repay their missed payments at the time the home is sold, refinanced, or at maturity. “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,” said FHFA Director Mark Calabria. “This new forbearance repayment solution responsibly simplifies options for homeowners while providing an additional tool for mortgage servicers. Borrowers who can pay their mortgage should, because missed payments remain an obligation that will ultimately have to be repaid.” In addition to the new payment deferral option, borrowers with COVID-19 related hardships can still utilize other options that include reinstatement, repayment plan, or loan modifications based on their individual situations. It’s reported that servicers will begin offering the payment deferral repayment option starting July 1, 2020.
When looking to refinance, the below is what we will consider and of course parts are still unknown at this time:
Please feel free to e-mail me at [email protected] for any questions or at 619-379-8999