The FHFA announces new mortgage forbearance guidelines
Fannie Mae, Freddie Mac and the Federal Home Loan Banks are taking steps to help people who have been impacted by the coronavirus.
If your ability to pay your mortgage has been impacted by the coronavirus (COVID-19), and your loan is owned by Fannie Mae or Freddie Mac, you may be eligible to delay making your monthly mortgage payments for a temporary period, during which:
- You won’t incur late fees
- You won’t have delinquencies reported to the credit bureaus
- Foreclosure and other legal proceedings will be suspended
If you have trouble catching up at the end of this temporary relief period, additional assistance may be available. You can work with your loan servicer (the company where you send your monthly payments) to resume making a mortgage payment. Or, if you need additional assistance, you can work with your servicer on other foreclosure prevention options to keep your home.
Contact your mortgage servicer as soon as possible to let them know about your current circumstances. The telephone number and mailing address of your servicer should be listed on your monthly mortgage statement.
A mortgage forbearance is an agreement between you and your mortgage servicer that lets you either stop making payments or lower your payments to an affordable level on a temporary basis during your hardship.
You MUST get in touch with your servicer immediately if you expect to be late or unable to make your monthly mortgage payment. The worst thing you can do is not communicate with your lender.
Remember: Mortgage forbearance is not mortgage forgiveness — You still have to pay back what you owe.
About the FHFA
The Federal Housing Finance Agency (FHFA) was established by the Housing and Economic Recovery Act of 2008 (HERA). As an independent regulatory agency, they oversee vital components of the secondary mortgage market including Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Their primary goal is to keep the overall housing finance system healthy.