As coronavirus (COVID-19) continues to affect Americans from all walks of life, borrowers can take action now to mitigate the impact of a missed mortgage payment. The Federal Housing Finance Agency (FHFA) and Federal Housing Administration (FHA) have taken steps to remind borrowers of hardship forbearance options.
Ranking Republican Patrick McHenry (NC-10) issued the following statement encouraging borrowers to take advantage of these resources:
“As the coronavirus continues to spread, borrowers should prepare for the impact this public health crisis may have on their personal financial health. This is especially important for the millions of Americans with monthly mortgage payments. If you anticipate having trouble making your next payment, I encourage borrowers to reach out to their lender to learn more about hardship forbearance so they can avoid late or missed payments in this uncertain time.”
Key facts:
- FHFA has announced that COVID-19 will trigger protocols similar to a natural disaster.
- Borrowers should contact their lenders directly before missing a payment to report a hardship related to COVID-19.
- Hardship forbearance resources can be used to mitigate the impact of a missed paycheck, lost job, or other financial hardship resulting from COVID-19.
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FHFA, FHA remind servicers of mortgage relief options as coronavirus spreads
As coronavirus is spreading, Freddie Mac and Fannie Mae are taking action
By Julia Falcon | March 10, 2020
Federal Housing Finance Agency Director Mark Calabria is reminding servicers and borrowers that hardship forbearance is an option for those who are unable to make their monthly mortgage payments due to coronavirus.
“To meet the needs of borrowers who may be impacted by the coronavirus, last week Fannie Mae and Freddie Mac (“the Enterprises”) reminded mortgage servicers that hardship forbearance is an option for borrowers who are unable to make their monthly mortgage payment,” Calabria said in a statement.
“For borrowers that may be experiencing a hardship, I encourage you to reach out to your servicer. The Enterprises and the Federal Home Loan Banks continue to provide support to the secondary mortgage market, and the UMBS market continues to operate at its normal level.”
As COVID-19 continues to spread, the Federal Housing Administration is also taking steps to aid borrowers who are struggling to make mortgage payments due to the novel virus.
“As with any other event that negatively impacts a borrower’s ability to pay their monthly mortgage payment, FHA’s suite of loss mitigation options provides solutions that mortgagees should offer to distressed borrowers – including those that could be impacted by the Coronavirus – to help prevent them from going into foreclosure. These home retention options are located in FHA’s Single Family Housing Policy Handbook 4000.1 Section III.A.2,” FHA said in a statement.
Read the full article on HousingWire here.
Visit Financial Services Committee Republicans’ website for additional resources and updates on efforts to mitigate the economic impact of coronavirus on consumers.