The Federal Housing Finance Agency (FHFA) recently announced that it will expand its loan payment deferral program in order to help protect borrowers from financial hardship during the COVID-19 pandemic. This payment deferral program was created to offer assistance to those who have been adversely affected by the coronavirus crisis, and are struggling to make their monthly mortgage payments.
Through the expanded relief options, homeowners that are financially affected by COVID-19 can elect one of two options: Loans can be deferred up to a maximum of 12-months, with interest capitalized into the loan balance at the end of deferral period; or, loans can be modified with up to 120-months of a fixed, interest-only payment with principal forgiveness. To qualify, borrowers must provide documentation of some form at least financial hardship relating to COVID-19.
The FHFA emphasized that the payment relief options are optional, and all borrowers’ payment plans will be able to be modified or deferred, as long as they meet the eligibility criteria. All borrowers will also retain their current loan incentives, such as Principal Reduction Modification or Home Affordable Modification Program incentives, as well as all existing protections provided under the Servicemembers’ Civil Relief Act, Fair Credit Reporting Act, and state and federal laws related to loss mitigation.
The payment deferral available through the FHFA’s program is expected to provide much needed financial relief for many homeowners that have been significantly impacted by the COVID-19 pandemic. The program will also preserve their current mortgage terms, including interest rate and other conditions, while providing flexibility to help them stay in their homes.
You can read this full article at: https://www.housingwire.com/articles/fhfa-to-expand-payment-deferrals-for-borrowers-facing-hardships/(subscription required)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.
Share This Story, Choose Your Platform!
Related Posts
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute legal, financial, investment, tax, or professional advice. Note Servicing Center, Inc. is a licensed loan servicer and does not provide legal counsel, investment recommendations, or financial planning services. Reading this content does not create an attorney-client, fiduciary, or advisory relationship of any kind. Nothing in this article constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation regarding any security, promissory note, mortgage note, fractional interest, or other investment product. Any references to notes, yields, returns, or investment structures are illustrative and educational only. Past performance is not indicative of future results, and all investments involve risk, including the potential loss of principal. Note investing, real estate transactions, and lending activities are subject to federal, state, and local laws that vary by jurisdiction and change over time. Before making any decision based on the information in this article, you should consult with a qualified attorney, licensed financial advisor, certified public accountant, or other appropriate professional who can evaluate your specific circumstances. Some articles on this site include hypothetical stories, examples, and scenarios created to illustrate concepts and demonstrate the types of situations Note Servicing Center, Inc. handles. Any names, companies, properties, and circumstances in these examples are fictitious or have been anonymized to protect confidentiality, and any resemblance to actual persons or entities is coincidental. These examples do not describe specific clients and do not guarantee any particular outcome. Some content may be created with the assistance of generative AI tools and may contain errors or omissions. While we make reasonable efforts to ensure the accuracy of the information presented, Note Servicing Center, Inc. makes no warranties or representations regarding the completeness, accuracy, or current applicability of any content. We disclaim all liability for actions taken or not taken in reliance on this article.