Following an announcement from the Federal Housing Finance Agency this week extending forbearance on GSE-backed mortgages for up to an additional three months, Freddie Mac today issued guidance on how it will implement the extension. Borrowers on an active COVID-19 forbearance plan as of Feb. 28, 2021, may be eligible for the additional forbearance period. Fannie Mae also issued eligibility guidance today for borrowers that may qualify for additional three months of forbearance, stating the borrower must be on a COVID-19 forbearance plan.
Both GSEs also clarified that there is no limit on the number of COVID-19 payment deferrals a borrower may receive—however, no more than 15 missed payments may be deferred as result of COVID-19 payment deferrals for the life of the loan.
In addition, pursuant to the FHFA’s announcement that it would extend the existing foreclosure moratorium, Freddie Mac and Fannie Mae directed servicers to suspend all foreclosure activities, including foreclosure sales, through March 31.