Fannie Mae and Freddie Mac have announced a new payment deferral option for homeowners who’re struggling to meet their mortgage repayments.
The new option is available regardless of if homeowners are struggling to pay due to the coronavirus outbreak, HousingWire reported.
The new option would enable homeowners to defer payments for up to two months, depending on their circumstances.
The GSEs had planned to unveil the program later in the year, but the coronavirus outbreak has prompted them to roll it out earlier. The program will be available to any borrower who has suffered a short-term hardship that’s caused then to miss one or two months of payments.
If borrowers resolve that hardship within those two months, they will be eligible to defer the two months of missed payments to the end of their loan, without having to modify their loan.
“This innovative relief solution addresses a unique hardship situation—homeowners who have resolved a short-term hardship,” Freddie Mac said in a statement about the new program. “It aims to serve those homeowners with a more affordable workout that’s between a repayment plan and a modification. This is a broad offering that is aligned with Fannie Mae … to assist more struggling homeowners.”
In recent days, the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, also has announced forbearance options for up to 12 months and mortgage relief to those facing a hardship due to the coronavirus national emergency. The FHFA has also suspended all foreclosures and evictions for at least 60 days. The aid applies to homeowners who have a loan backed by Fannie or Freddie.