Fannie Mae (OTCQB:FNMA +6.0%) and Freddie Mac (OTCQB:FMCC +6.8%) issue temporary guidance on
the eligibility of borrowers who are in forbearance, or have recently
ended their forbearance, to refinance or buy a new home.
The guidance allows borrowers to refinance or buy a
new home if they are current on their mortgage (i.e., in forbearance
but continued to make their mortgage payments or reinstated their
mortgage).
They’re also eligible to refinance or buy a new
home three months after their forbearance ends and they have made three
consecutive payments under their repayment plan, or payment deferral
option or loan modification.
“Homeowners who are in COVID-19 forbearance but
continue to make their mortgage payment will not be penalized,” said
Director Mark Calabria. “Today’s action allows homeowners to access
record low mortgage rates and keeps the mortgage market functioning as
efficiently as possible.”
The FHFA is also extending Fannie and Freddie’s
previously announced ability to purchase single-family mortgages in
forbearance. The GSEs are now able to buy forborne loans, with note
dates on or before June 30, 2020, as long as they are delivered to the
enterprises by Aug. 31, 2020 and where only one mortgage payment has
been missed.
The previous policy was set to expire on May 21, 2020.
https://seekingalpha.com/news/3576053-fannie-freddie-ease-forbearance-rule-to-allow-new-mortgages
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