Facing pressure from the mortgage industry and lawmakers, the U.S. Department of Agriculture and Federal Housing Administration have both extended their forbearances through May 31.
The USDA’s extension will cover single-family homeowners with USDA-backed loans who have been impacted by the coronavirus pandemic. The agency had initially announced a 60-day forbearance period back in March, but due to the ongoing pandemic and its effect on homeowners, the USDA decided to extend the forbearance period.
Similarly, the FHA will also extend its forbearance period for single-family homeowners with FHA-backed loans. The FHA had initially announced a 60-day forbearance period back in March as well, but will now extend that through May 31.
Both agencies’ forbearance programs will allow homeowners to temporarily suspend their mortgage payments if they’ve been impacted by the coronavirus pandemic. Homeowners who participate in the forbearance programs will not be charged late fees, and their credit scores will not be impacted.
You can read this full article at: https://www.housingwire.com/articles/usda-fha-extend-forbearances-through-may-31/(subscription required)
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