Freddie Mac and Fannie Mae to allow 12 months mortgage payment deferral

The Freddie Mac (OTCQB:FMCC) COVID-19 Payment Deferral solution returns a homeowner’s monthly mortgage payments to its pre-COVID amount by adding up to 12 months of missed payments, including escrow advances, to the end of the mortgage terms without accruing any additional interest or late fees.

See also: Fannie announces COVID-19 payment deferral option

This will help borrowers keep their mortgage payment current following their hardship when other options — such as reinstatement, or a repayment plan — are not viable, Freddie said.

The COVID-19 Payment Deferral solution is effective July 1, 2020, at which time servicers must begin evaluating homeowners with resolved COVID-19 related hardships for eligibility.

Loan servicers will reach out about 30 days before the initial forbearance plan is scheduled to end to determine which Freddie Mac assistance program is best or if additional forbearance is needed.

https://seekingalpha.com/news/3574126-freddie-mac-and-fannie-mae-to-allow-12-months-mortgage-payment-deferral