The Federal Housing Finance Agency announced today that Fannie Mae and Freddie Mac are offering a new COVID-19 payment deferral option, beginning July 1, for mortgage borrowers facing financial hardship due to the coronavirus pandemic. With this repayment option for GSE-supported loans, borrowers in forbearance may have their forborne mortgage payments put into a payment due at the sale or refinancing of the home, or at loan maturity. Under this option, the borrower’s monthly mortgage payment will not change.
In addition to the payment deferral option, borrowers continue to have a range of other repayment options that they can utilize, including reinstatement, repayment plan or loan modifications based on their individual situations. FHFA also reiterated that the GSEs do not require borrowers to repay their loans in one lump sum when exiting forbearance.
