Earlier this week, Federal Housing Finance Agency (FHFA) in a release, announced that enterprises will purchase qualified loans in forbearance to keep the lending flowing. This move comes in to support homeowners and mortgage lenders. FHFA has said that they are approving the purchase of certain single-family mortgages in forbearance that meet specific eligibility criteria by Fannie Mae and Freddie Mac (the Enterprises).
In the release, Director Mark Calabria said “We are focused on keeping the mortgage market working for current and future homeowners during these challenging times. Purchases of these previously ineligible loans will help provide liquidity to mortgage markets and allow originators to keep lending.”
Due to the COVID-19 pandemic, some borrowers have sought payment forbearance shortly after closing on their single-family loan and before the lender could deliver the mortgage loan to the Enterprises. Mortgage loans either in forbearance or delinquent are ineligible for delivery under Enterprise requirements. However, today’s action lifts that restriction for a limited period of time and only for mortgages meeting certain eligibility criteria.
Eligible loans will also be priced to mitigate the heightened risk of loss to the Enterprises from these loans. FHFA and the Enterprises will continue to monitor the impact of the coronavirus national emergency on the housing finance market and update policies as necessary. To see the actions FHFA has taken to help Americans impacted by the coronavirus remain in their homes please visit FHFA’s Webpage on Coronavirus Actions.
At Peoples Processing, we can help servicers engage effectively with borrowers and efficiently handle forbearance requests. We can also coordinate with other related third-party agencies to mitigate the loss for servicers.
Peoples Processing has been serving the mortgage industry for 10+ years. We offer end-to-end mortgage servicing support right from Loan Boarding to managing default operations and loss mitigation.
Find out how this can make a difference to your servicing operations. Write to us at email@example.com, we would love to help.