In communications to lenders today, Fannie Mae and Freddie Mac announced a new home retention workout option that would allow eligible borrowers who have resolved a temporary hardship and resumed their monthly mortgage payments to make payment deferrals if they cannot afford a full reinstatement or repayment plan to bring the loan current.
The updates outlines several criteria for borrowers seeking payment deferrals, including that the mortgage loan must: be a conventional first lien mortgage loan; be 30 to 60 days delinquent for at least three consecutive months; have been originated at least 12 months prior to the evaluation date for a payment deferral; and have not received a prior payment deferral.
They also address how to determine payment deferral terms, the processing of payment deferral for various loan types, fees and more. Servicers may begin evaluating borrowers for payment deferrals on or after July 1, 2020.
