Frequently Asked Questions
(And Answers)

These FAQs are meant to answer general questions for consumers and industry stakeholders who are directly impacted by COVID-19.

CFPB

  • “What options are available to help temporarily reduce or suspend my payments?
  • Are there forbearance, loan modification, or other options applicable to my situation?
  • When will you waive the late fees on my mortgage account?
  • What should I do at the end of my forbearance period? When should I contact or expect to hear from my servicer prior to the end of the forbearance period?
  • What are my payment options at the end of the forbearance period?
  • If your loan is not federally backed or is not backed by Fannie Mae or Freddie Mac, ask: What restrictions and requirements will apply at the end of the forbearance period?
  • Will interest be charged on my unpaid mortgage payments during forbearance?
  • What are my rights if I disagree with your determination?”
Source | CFPB

Housingwire: “Your servicer should contact you prior to the end of your forbearance plan to discuss options for bringing the mortgage current. However, you can contact them to begin this discussion and determine the best option for you, based on your individual circumstances.”

Source | HousingWire

Housingwire: “Yes, if you have experienced job loss, reduced income, illness or other issues related to COVID-19 you could be eligible for forbearance.”

 

Source | HousingWire

Housingwire: “You may be eligible for another loan modification, pending no eligibility restrictions. Your servicer will confirm your eligibility.”

Source | Housingwire

Housingwire: “Home retention options may include payment deferral or a loan modification. For COVID-19 related hardships, there are additional flexibilities for these options. If homeownership is no longer affordable, there are options to exit the home without facing the costly impacts of foreclosure, including a short sale or deed-in-lieu.”

Source | Housingwire

Housingwire: “Yes.”

Source | Housingwire

Housingwire: “If you have the financial capacity, the most desirable option is to do a reinstatement or repayment plan. Reinstatement is the act of restoring a delinquent mortgage to current status. A repayment plan is when the homeowner pays the regular monthly payments plus an additional agreed upon amount in repayment of the delinquency for a period of time. However, there are additional options, including deferring missed payments until the end of the loan (payment deferral), payment relief options if needed (loan modification) or other alternatives.”

Source | Housingwire

Housingwire: “An option for homeowners who can no longer afford their pre-forbearance payment. For example, a Freddie Mac Flex Modification, targets a 20% payment reduction by extending the mortgage term to 40 years, reducing the interest rate (if applicable) and creating a forborne balance (if applicable).”

Source | Housingwire

Fannie Mae: “The update to record retention requirements applies to all loans delivered with remote online notarizations in accordance with the requirements set forth in LL-2020-03. For loans delivered prior to Aug. 27, 2020, lenders will not be required to store the notarial ceremony for the life of the loan and instead must maintain the notarial ceremony per the updated requirements of LL-2020-03.”

Freddie Mac: “The update to record retention requirements applies to all mortgages delivered with remote online notarizations in accordance with the requirements in Bulletin 2020-8.  For mortgages delivered prior to August 27, 2020, Sellers will not be required to store the notarial ceremony for the life of loan and instead must maintain the notarial ceremony in compliance with the updated requirements of Bulletin 2020-35.”

 

Source | Fannie Mae
Source | Freddie Mac

Washington Post: “How much your score will drop depends on a lot of factors. Generally, the impact will be more noticeable on a credit report with no history of missed payments vs. a credit report that already shows a history of missed payments, said Tom Quinn, vice president of scores at FICO.

In an example provided by FICO, a homeowner who has never missed a payment has a FICO score of 793. But a 30-day late payment could drop her score by as much as 83 points. But the drop to the low 700s on a scale that runs from a low of 300 to a high of 850 is still a good score.”

 

Source | Washington Post

ICBA: “For GSE loans, interest continues to accrue and then the bank adds those deferred payments onto the end of the loan, maintaining the same amortization. Any taxes or insurance the bank must advance that was not collected during the forbearance period can be capitalized into the balance.”

Source | ICBA

Housingwire: “Yes, under the CARES Act, if you have a federally backed mortgage, you can request an extension of the forbearance for up to an additional 180 days.” 

 

Source | Housingwire

Housingwire: “Yes, borrowers impacted by COVID-19 are eligible for forbearance regardless of whether their property is owner-occupied, a second home or an investment property.” 

 

Source | Housingwire

“Before the end of your forbearance period, your servicer should reach out to you to negotiate end of forbearance terms for repayment and possible extensions in certain situations, or a relief or workout option following forbearance.”

 

Source | Housingwire

Housingwire: “If your servicer approves your request, you will be provided a forbearance agreement outlining the terms. During the forbearance period, the servicer must not initiate or continue with foreclosure proceedings.

Source | Housingwire

Fannie Mae: “You may be eligible for a refinance or a new mortgage loan if you are in forbearance but have continued to make timely payments. You may also be eligible for a refinance or a new mortgage loan if you were previously in forbearance but have resolved any missed payments through a reinstatement or have made three timely payments either in accordance with a repayment plan or following a payment deferral, or completed the trial period plan payments in connection with a modification. Contact your mortgage lender to discuss your options as other eligibility requirements may apply.”

Source | Fannie Mae

Fannie Mae: “If your mortgage is covered by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), you do not have to provide extensive documentation to show your financial circumstances have been impacted by COVID-19. Before reaching out to your mortgage servicer, check the company’s website to see what information they provide about forbearance plans and if you can apply online. Before you speak with a representative, have your account number available and be prepared to ask questions about your mortgage payment assistance options, including your ability to obtain a forbearance plan.”

Source | Fannie Mae

Fannie Mae: “The forbearance plan process involves four simple steps. However, millions of people are seeking financial assistance for their mortgages right now, so contact centers at mortgage servicing companies may have longer than usual wait times. In some cases, you may be able to request assistance online.”

Source | Fannie Mae

Fannie Mae: “If you are experiencing a financial hardship related to COVID-19, don’t wait. Contact your mortgage servicer (the company that receives your mortgage payments) today to learn about the temporary mortgage assistance options available to you. You can discuss options that allow you to either pause or lower your payments, so you have time to regain your financial footing. Start seeking assistance options while you are still making your mortgage payments, so you can avoid negative impacts like delinquent credit reporting or late fees.”

Source | Fannie Mae

National Association of REALTORS®: “FEMA is extending the grace period to renew flood insurance policies from 30 to 120 days. If a policy has an expiration date between February 13, 2020 and June 15, 2020, then the NFIP insurer must receive the appropriate renewal premium within 120 days of the expiration date to avoid a lapse in coverage. Likewise, if a policyholder receives an underpayment notice dated between February 13, 2020, and June 15, 2020, then the NFIP insurer must receive the additional premium amount requested within 120 days of the date of the notice.”

AARP: “Yes, on a case-by-case basis. Bank of America, for one, says that mortgage borrowers can request to defer payments, with payments added to the end of the loan. Wells Fargo is suspending residential property foreclosure sales and evictions.  Wells Fargo is telling its mortgage customers, “If you’re unable to make your payment due to COVID-19 related hardships, we’re offering a 90-day payment suspension.” And Chase bank asks worried mortgage holders to call to work out a plan. If you need help, be proactive and give your bank a call.”

Source | AARP

AARP: “The average 30-year fixed mortgage rate was 3.50 percent the week ended March 19, according to Freddie Mac. The rule of thumb is that you should consider refinancing only if the new mortgage rate would be 1 percentage point lower than your current rate.

But there are plenty of variables, such as fees and points. (A point is an upfront fee equal to 1 percent of the loan; the more points you agree to pay, the lower your rate.) Will you stay in your home long enough for the lower rate to offset the cost of fees and points? You can crunch the numbers using mortgage calculators such as those offered by Bankrate, NerdWallet, HSH, SmartAsset and others.

Refinancing demand is high, and it may take longer than usual to get appraisals and title searches as government offices shut down because of the coronavirus epidemic. You may also have to do a virtual closing via videoconference, to maintain social distancing safety guidelines. Ask your bank how long their refinancing process takes, and whether they are reasonably sure that they can close the deal in a reasonable amount of time.”

 

Source | AARP

National Association of REALTORS©: FHA, Fannie Mae and Freddie Mac have not made any changes to credit scoring or down payment requirements. The only change they have made for borrowers is to allow MORE flexibility in how a lender can verify employment. 

Many individual lenders are adding their own, higher standards on these products. The rational is that the cost of servicing these loans has surged due to the widespread forbearance that is taxing servicers’ resources. Under forbearance, the servicer must continue to pay PITI to the investor, but the sheer volume of forbearance to deal with the COVID-19 response is unprecedented. Since lower-credit borrowers are more likely to take forbearance and servicing is harder to get, lenders are less willing to extend this credit regardless of the FHA or GSEs’ standards.”

 

CFPB: “After your forbearance period ends, you will have to make arrangements with your servicer to repay any amount suspended or paused.

Under the CARES Act, if you have a federally backed mortgage, you also can request an extension of the forbearance for up to an additional 180 days.

The method of repayment varies depending on your loan and the options offered. Not all borrowers will be eligible for all options. You should take steps to be aware of how these programs work and what you can expect in terms of repaying these amounts.

Generally, repayment of forbearance occurs by the amount being repaid:

  • In one lump sum at the end of the forbearance period;
  • Added onto your existing monthly payments over a set number of months;
  • Added to the end of your loan as additional payments or as a lump sum.

 
Just as forbearance may differ between the federally backed agencies or entities, so does the repayment of the forbearances. 

Please check back for updated information as well as check with your loan servicer and the website of the agency or entity that owns or guarantees your loan. The following information provides some of the options to repay your forbearance.

Fannie Mae & Freddie Mac loans:

  • Borrowers allowed to repay past due amount within 12 months after forbearance ends;
  • Extend the term of the mortgage by the exact number of months in forbearance;
  • Add past due amounts into loan balance and extend the term of the loan by the number of months necessary to make the monthly payment the same as the previous payment;
  • Add past due amounts into loan balance and extend term of loan for 40 years (480 months).

 FHA loans:

  • Borrowers may enter into a repayment plan to repay past due amounts within 6 months after forbearance ends;
  • Extend term of mortgage to 30 years (360 months) by adding the past due amounts into the previous monthly payment;
  • Past due amounts paid off at the end of the loan in a lump sum.

 VA loans:

  • Borrowers may enter into a repayment plan to repay past due amount within 6 months after forbearance ends;
  • Add past due amount into loan balance and extend term to 30 years (360 months);
  • Targets lower payment of 31% of borrower’s gross income by extending loan term to 30 years (360 months) with option to forbear principal.

 USDA loans:

  • Borrowers may enter into a repayment plan to repay past due amounts within 6 months;
  • Add past due amount into loan balance and extend term to 30 years (360 months) as long as payment less than or equal to payment prior to forbearance;
  • Lump sum repayment at loan payoff.
Source | CFPB

CFPB: “Before entering into a forbearance, homeowners may want to ask: 

  • What options are available to help temporarily reduce or suspend my payments?
  • Are there forbearance, loan modification, or other options applicable to my situation?
  • Can you waive late fees on my mortgage account?”
Source | CFBP

CFPB: “If you need help working with your servicer or understanding your options you may want to reach out to a professional to help you with your specific situation.

  • HUD-Approved Housing Counselors: The U.S. Department of Housing and Urban Development (HUD)-approved housing counselors can discuss options with you if you’re having trouble paying your mortgage loan or reverse mortgage loan. This may also include forbearance or a modified payment program.
  • Credit Counselors: Reputable credit counseling organizations are generally non-profit organizations that can advise you on your money and debts, and help you with a budget. Some may also help you negotiate with creditors. There are specific questions to ask to help you find a credit counseling organization to work with.
  • Lawyers: If you need a lawyer, there may be resources to assist you through your local bar association, legal aid, or if you are a servicemember, your local Legal Assistance Office. 
  • State-specific support: Your state may also offer additional mortgage relief options. Many states are implementing or considering various mortgage relief options that are in addition to federal initiatives, including the suspension of foreclosures, as well as additional assistance for homeowners. Check your state’s government website for details.” 
Source | CFPB

OCC: “You should contact your loan servicer as soon as possible to let them know of your circumstances. The OCC has encouraged banks to work with customers who have been adversely affected by COVID-19.

If your loan is owned by Fannie Mae and Freddie Mac (the Enterprises) and your ability to pay your mortgage is affected, you may be eligible to delay making your monthly mortgage payments temporarily. Additionally, on March 18, 2020, the Federal Housing Finance Agency (FHFA) directed the Enterprises to suspend foreclosures and evictions for at least 60 days due to the COVID-19 national emergency. More information is available on the FHFA website

The OCC generally does not have the authority to stop a foreclosure, but you can file a “Customer Complaint Form” with the OCC if you are having problems with your bank’s handling of your mortgage loan. The OCC can facilitate communications between you and the bank once your written complaint is received. 

We advise you to contact the U.S. Department of Housing and Urban Development to review information and understand your options. This service is free and available 24/7. You can visit the OCC’s Help With My Bank website and review the general information under the Mortgages category for more details. You may also want to seek legal assistance to protect your rights.”

Source | OCC

TransUnion: After talking to your lenders about your situation, you may learn that they will place your accounts in forbearance/hardship or deferral. These are common methods lenders use to report accounts to the credit reporting agencies.

Having an account in forbearance usually means your lender has agreed that you can temporarily stop making payments on that account for a certain amount of time.

A deferred account means the lender has agreed that you can delay payment for a certain amount of time. Usually, this will show up on your credit report in the Remarks field with a comment that says “Payment Deferred.”

If you’re curious how your credit score will be impacted by an account in forbearance/deferral, check out the VantageScore or FICO websites for more information.  It’s important to note, a credit score is based on many factors in your credit report and different scoring models use different methods to calculate credit scores.”

Equifax: “While forbearance may allow you to deal with your short-term financial challenges and help you get back on your feet without jeopardizing your credit rating or credit scores, it doesn’t come without its drawbacks. If you enter into a forbearance agreement, you’re not getting “free money.” Depending on the repayment plan you agree to with your lender or creditor, you may need to repay the interest that accrues during your approved deferral period, and late fees may still apply. Ask your lender if you’ll still be charged late fees, how and when those fees will be applied and how your forbearance agreement will be reported to the national credit bureaus.”

Experian: “Without a forbearance or deferral agreement, skipping or making partial loan payments is considered delinquency. Delinquencies are recorded on your credit report and can have a major negative impact on your credit score.

How suspended or reduced payments are handled under forbearance agreements differs by loan type. Their consequences for mortgages and student loans have different potential impacts on your credit. 

With the exception of special circumstances during emergencies such as the COVID-19 crisis (more on that below), mortgage payments missed or underpaid as part of a deferral or forbearance arrangement are technically delinquencies, since they don’t conform to the repayment terms spelled out in your original loan agreement. Mortgage lenders have the right to report them as such to the credit bureaus, but they’re not required to do so. Ask your lender about their policy before accepting a forbearance agreement so you know what to expect.

Under mortgage forbearance agreements, lenders agree to refrain from pursuing foreclosure proceedings, which can do lasting damage to your credit over and above the harm caused by missed payments. A foreclosure stays on your credit report for seven years from the date of the first delinquency that led to foreclosure, so if forbearance allows you to avoid foreclosure, taking a near-term credit score hit might be a worthwhile trade-off.”

House Finance Services Committee: “If you are approved for a forbearance, a payment delay, or other payment arrangement with your creditor or servicer, and you are current on your accounts, then the creditor or servicer will continue to report you to the credit rating agencies (or CRAs) as current or up-to-date. In this case, your credit report and score would not be negatively impacted by these non- or delayed payments during the covered period of the arrangement. Unfortunately, if you were already reported to be behind on payments prior to the payment arrangement, the creditor or servicer can continue to report you as late to the CRAs, meaning continued non-payments may be treated negatively on your credit report and score.”

National Association of REALTORS®: “The CARES Act implemented provisions to protect credit scores from January 30, 2020 through 120 days after enactment of the national emergency. If customers are making payments, or made arrangement to not make payments, customers must be reported as being current. If a customer was delinquent, but was able to make an arrangement with the servicer and is now current, then their account must be reported as current. The important thing is to reach out to your servicer, bank or credit card company if you are having trouble making your payments.”

Fannie Mae: “No, a borrower may make payments during the forbearance plan without any impact to the length of the forbearance plan. If a borrower requests a shorter forbearance plan, the servicer must shorten the forbearance plan and, at the completion of the forbearance plan, evaluate the borrower for post-forbearance options.”

Freddie Mac: “No, a borrower may make payments during the forbearance period. The forbearance plan will continue to term and the payment must be applied as usual in accordance with Guide Section 8103.4.”

Source | Fannie Mae
Source | Freddie Mac

The first thing is call your servicer. Communication is critical and there are a lot of options available if you need help. Second, document every conversation and follow up in a letter or email noting what was discussed in your phone call. This will help you and the next person you talk to when you call back or they call you. And finally, don’t freak out if they tell you paying back all of the money at one time is an option. It is an option but it is not a requirement. Obviously, if you can’t pay one mortgage payment this month, you’re not going to be able to pay six of them six months from now. The gold standard of forbearance is mortgage deferral, where your missed payments are applied to the end of your loan. That means you don’t pay it back until you sell your house or at the end of your mortgage term. The tricky part is that they can’t offer it to you until you are able to pay your mortgage again, so stay in touch while you are out of work, and be assertive about deferral when you are ready to resume your mortgage payments.

HUD: “Yes. Even if you received an FHA COVID-19 Forbearance, you are not required to use the full six months. It is more beneficial for you to begin making your regular mortgage payments as soon as you can reasonably do so. If you are able to begin making your payments prior to the expiration of your forbearance, contact your mortgage servicer and let them know you are ready to resume making your regular monthly mortgage payment. Your servicer will assist you in doing so. 

Federal and state governments have announced plans to help struggling homeowners during this time. For more information, visit: https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/ 

Additional information is available in the following video: VIDEO: CARES Act Mortgage Forbearance: What You Need to Know

Benefits.gov is an online resource to help you find federal benefits you may be eligible for in the United States. Visit https://www.benefits.gov/  for more information and a link to the Benefit Finder, to find information on government benefits you may be eligible to receive.”

 

Source | HUD

HUD: “FHA servicers will ask you to confirm that you are having a financial hardship, either directly or indirectly, due to the COVID-19 National Emergency in order to qualify for a COVID-19 Forbearance, but will not require that you supply any documents. 

Your mortgage servicer can further explain the COVID-19 Forbearance and help you figure out other options for repaying the suspended mortgage payments or the balance of reduced mortgage payments.

Federal and state governments have announced plans to help struggling homeowners during this time. For more information, visit: https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/ 

Additional information is available in the following video: VIDEO: CARES Act Mortgage Forbearance: What You Need to Know 

Benefits.gov is an online resource to help you find federal benefits you may be eligible for in the United States. Visit https://www.benefits.gov/ for more information and a link to the Benefit Finder, to find information on government benefits you may be eligible to receive.”

 

Source | HUD

CFPB: “To help keep Americans connected during the coronavirus pandemic, the Federal Communications Commission (FCC) has temporarily waived Lifeline usage requirements and general de-enrollment procedures until May 29, 2020. An FCC order , released on March 30, 2020, will help ensure that no current Lifeline subscribers are involuntarily removed from the Lifeline program during this time of national crisis.”

Source | CFPB

CFPB: “Many states have suspended public utility disconnections. Check with your state utility commission  or your local utility to see what protections or relief may be available. Municipal utilities and Rural Electric Cooperatives (REC) may be covered by your state’s emergency proclamation. They may also have their own COVID-19 disconnection policy. Check with your municipal utility or REC for details.”

Source | CFPB

CFPB: “While you’re in the forbearance period, or working under another mortgage relief option, there are a number of things to do to continue to protect yourself. This advice applies to both a CARES Act forbearance and other mortgage relief that you might receive.

  • Keep written documentation on hand. You want to make sure that you have this documentation available in case there are any errors on your monthly mortgage statements to ensure that your statement reflects the assistance provided.
  • Pay attention to your monthly mortgage statement. Continue monitoring your monthly mortgage statements to make sure you don’t see any errors. Stop or change auto-payments for your mortgage. If you are having your mortgage payment deducted automatically from your bank account, make sure you make any necessary adjustment to avoid any fees or charges.
  • Keep an eye on your credit. It’s a good idea to routinely check your credit reports in order to make sure there are no errors or inaccuracies. If you stop making mortgage payments without a forbearance agreement, the servicer will report this information to the credit reporting companies, and it can have a lasting negative impact on your credit history. If an error has been made, however, you can work to dispute it.
  • Get more information about protecting your credit during the coronavirus pandemic.
  • Once your income is restored, contact your servicer and resume your payments. With forbearance, you still owe the payments that you missed, but fewer missed payments mean you’ll owe less down the road.
  • If you’re continuing to receive some income that turns out to be more than you need for your bills and expenses (including anything you keep paying on your mortgage), consider putting the extra money away so you can use it to pay off what’s needed later. If you can save any money now, it’ll be helpful when payments are due later.
  • Your property taxes and insurance should continue to be paid if your mortgage has an escrow account, but you may want to confirm with your servicer. If your mortgage does not have an escrow account, you will be responsible for these payments.”
Source | CFPB

Department of Veterans Affairs: “If you’re having difficulty making your mortgage payment, contact your loan servicer right away. This is your chance to find a solution that might work for your scenario.

If you’re nervous about contacting your servicer, or if you’d like our help and advice, please contact a VA loan technician at 877-827-3702.

Be careful about offers to help you make up back payments

If you’re behind on your mortgage payments and you get this type of offer from someone you don’t know, contact the servicer of your mortgage or your nearest VA regional loan center for advice. They can let you know if it’s an honest offer.”

Department of Veterans Affairs: “There are 6 general ways you can try to avoid a foreclosure:

  1. Repayment plan: If you’ve missed a few mortgage payments, this plan lets you go back to making your regular payments, with an added amount each month to cover the ones you’ve missed.
  2. Special forbearance: This plan gives you some extra time to repay the missed mortgage payments.
  3. Loan modification: Sometimes you need a fresh start. This plan lets you add the missed mortgage payments and any related legal costs to your total loan balance. You and your servicer then come up with a new mortgage payment schedule.
  4. Extra time to arrange a private sale: If you need to sell your home, this plan lets you delay a foreclosure so you have time to sell.
  5. Short sale: If you owe more money than your house is worth, your servicer might agree to a short sale. This means the servicer will accept the total proceeds from the home sale (even if it’s less than the full amount you owe on the mortgage) as full payment of the debt you owe.
  6. Deed in lieu of foreclosure: This plan lets you avoid the foreclosure process by signing over the deed to the home to your servicer. The home will then belong to the servicer.

Our VA loan technicians can help you figure out which option is best for you. Contact a VA loan technician at 877-827-3702.”

FHFA: “Homeowners can use Fannie Mae or Freddie Mac’s “loan lookup” tools on their respective websites – https://www.knowyouroptions.com/loanlookup for Fannie Mae or https://ww3.freddiemac.com/loanlookup/ for Freddie Mac.”

Source | FHFA

FHFA: “Homeowners must contact their servicer to let them know they are impacted and having difficulty making their mortgage payment. Servicers will review the homeowner’s situation to determine whether forbearance is appropriate. Homeowners do not need to provide extensive documentation to be placed in a forbearance plan.”

Source | FHFA

FHFA: “Forbearance is for homeowners in need of assistance, so only those unable to make their mortgage payment should request it. The first step homeowners should take is to determine whether they are able to make their next mortgage payment. Those homeowners still able to pay their mortgage, should continue to do so. Homeowners unable to make their next mortgage payment due to a decline in income resulting from the impact of COVID-19, should call their servicer immediately upon making that determination.”

Source | FHFA

FHFA: “At the end of the forbearance period, homeowners are still required to eventually fully repay the forbearance, but they will not have to repay it all at once unless they are able to do so. Servicers will reach out to homeowners in forbearance about 30 days before the scheduled end of forbearance to determine which assistance program works best for the homeowner at that point – a repayment plan, loan modification, or an extension of the forbearance period if needed.”

CFPB: “After your forbearance period ends, you will have to make arrangements with your servicer to repay any amount suspended or paused.

Under the CARES Act, if you have a federally backed mortgage, you also can request an extension of the forbearance for up to an additional 180 days.

The method of repayment varies depending on your loan and the options offered. Not all borrowers will be eligible for all options. You should take steps to be aware of how these programs work and what you can expect in terms of repaying these amounts.

Generally, repayment of forbearance occurs by the amount being repaid: in one lump sum at the end of the forbearance period; added onto your existing monthly payments over a set number of months; or added to the end of your loan as additional payments or as a lump sum.

Just as forbearance may differ between the federally backed agencies or entities, so does the repayment of the forbearances.

Please check back for updated information as well as check with your loan servicer and the website of the agency or entity that owns or guarantees your loan. The following information provides some of the options to repay your forbearance.

Fannie Mae & Freddie Mac loans:

  • Borrowers allowed to repay past due amount within 12 months after forbearance ends;
  • Extend the term of the mortgage by the exact number of months in forbearance;
  • Add past due amounts into loan balance and extend the term of the loan by the number of months necessary to make the monthly payment the same as the previous payment;
  • Add past due amounts into loan balance and extend term of loan for 40 years (480 months).

FHA loans:

  • Borrowers may enter into a repayment plan to repay past due amounts within 6 months after forbearance ends;
  • Extend term of mortgage to 30 years (360 months) by adding the past due amounts into the previous monthly payment;
  • Past due amounts paid off at the end of the loan in a lump sum.

VA loans:

  • Borrowers may enter into a repayment plan to repay past due amount within 6 months after forbearance ends;
  • Add past due amount into loan balance and extend term to 30 years (360 months);
  • Targets lower payment of 31% of borrower’s gross income by extending loan term to 30 years (360 months) with option to forbear principal.

USDA loans:

  • Borrowers may enter into a repayment plan to repay past due amounts within 6 months;
  • Add past due amount into loan balance and extend term to 30 years (360 months) as long as payment less than or equal to payment prior to forbearance;
  • Lump sum repayment at loan payoff.

For non-federally backed loans: Check with your lender and your loan servicer for the forbearance repayment options that they offer. You may be able to find information about forbearance programs by checking the websites of your lender and servicer for more detailed information.”

Source | FHFA
Source | CFPB

FHFA: “While in forbearance, homeowners do not incur late fees or other penalties. However, the terms of the mortgage are unchanged, and arrangements will need to be made with the servicer to make up missed payments.”

Source | FHFA

FHFA: “A forbearance plan is an agreement between a homeowner and their mortgage servicer (the company they send their monthly mortgage payments to) that establishes an alternative payment schedule to reduce or suspend payments for a period of time. Importantly, mortgage forbearance plans do not reduce the principal amount owed on a mortgage, and interest continues to accrue for the duration of the plan. Homeowners who can afford to make partial payments should do so in order to lessen the amount due at the end of the forbearance.”

Source | FHFA

FHFA: “Homeowners unable to make their mortgage payments resulting from the impact of COVID-19 (regardless of whether they have contracted the virus) may be eligible for a mortgage forbearance plan to reduce or suspend their mortgage payments for up to 12 months. This assistance is available to homeowners with single family or condominium mortgages owned by Fannie Mae or Freddie Mac (the Enterprises) regardless of whether their property is owner occupied, a second home, or an investment property.”

Source | FHFA

House Financial Services Committee

Beware on anyone seeking to charge you for accessing the relief provided under the bill. The bill provides eligible borrowers the right to request and receive forbearance on their mortgage payments for up to 6 months, with the option to extend for an additional 6 months (total max of 1 year), as well as the option to discontinue the forbearance at any time. Contact your mortgage servicer to determine whether your mortgage is eligible for forbearance under the bill. You do not need to pay any fees if you are eligible to receive these benefits. Eligible homeowners, however, do need to contact their servicer to request a forbearance.

Beware of anyone charging you in advance for assistance in modifying the terms of your mortgage. In most circumstances, it is unlawful to charge fees in advance for a mortgage modification. Contact your servicer to inquire about options for modifying the terms of your mortgage.”

House Financial Services Committee: “Homeowners who are suffering financial hardship, directly or indirectly related to COVID-19 should contact their servicer to request a forbearance. Homeowners will have to attest to financial hardship caused directly or indirectly by COVID-19 to receive a forbearance but are not required to provide any further documentation to prove such financial hardship.

Homeowners who are facing foreclosure should not have to do anything further and should immediately benefit from the foreclosure moratorium. If a homeowner is subject to an initiation of foreclosure proceedings, a continuation of foreclosure proceedings, or a foreclosure related eviction [during the federal moratorium], they should contact their servicer immediately to receive an explanation as to why this activity has not been halted. If servicers are unresponsive and/or continue to be noncompliant, homeowners can contact the relevant federal agency or entity that is backing their mortgage or seek out legal assistance. You may want to submit a complaint with the Consumer Financial Protection Bureau through their complaints webpage, available here. You can also contact the CFPB via telephone by calling (855) 411-2372.”

House Financial Services Committee: “Although homeowners with mortgages that are not federally backed are not technically covered under the CARES Act, some lenders are voluntarily aligning the relief they are providing with the relief provided for federally backed mortgages, so it is still possible that homeowners without federally backed mortgages will have access to similar relief. Reaching out to your servicer is the best way to find out what relief is available to you.”

 

House Financial Services Committee: “Homeowners with “federally backed mortgages” are eligible for assistance under this bill. Federally backed mortgages are defined as mortgages for single-family homes that are:

  • purchased or securitized by Fannie Mae or Freddie Mac;
  • insured by the Federal Housing Administration (FHA), including reverse mortgages or Home Equity Conversion Mortgages (HECMs);
  • guaranteed, directly provided by, or insured by the Department of Veterans Affairs (VA);
  • guaranteed, directly provided by, or insured by the Department of Agriculture (USDA); or
  • guaranteed under HUD’s Native American or Native Hawaiian Home Loan Guarantee programs.

 

Homeowners that do not know whether their mortgage fits this definition, should reach out to their mortgage servicer to find out. Your mortgage servicer is the company that you send your mortgage payments to each month. For context, 70 percent of mortgages in the current market are federally backed. Homeowners with mortgages that are not federally backed are unfortunately not covered under the CARES Act.”

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