The Federal Housing Finance Agency (FHFA) has outlined Fannie Mae and Freddie Mac enhanced payment deferral policies enabling borrowers facing hardship to defer up to six months of mortgage payments.
The bolstered payment deferral policies would promote sustainable homeownership and further support the safety and soundness of Fannie Mae and Freddie Mac (the Enterprises).
“The Enterprises completed more than one million COVID-19 payment deferrals during the pandemic, helping borrowers nationwide to stay in their homes,” FHFA Director Sandra L. Thompson said. “Based on the success of the COVID-19 payment deferral, we are making this solution a key part of our standard loss mitigation toolkit that is available to all borrowers with eligible hardships.”
Through payment deferral, borrowers can resolve a financial hardship to keep the same monthly mortgage payment by moving past-due amounts to the end of the loan as a non-interest bearing balance, due and payable at maturity, sale, refinance, or payoff, the FHFA noted.
The FHFA recommends borrowers facing financial hardship contact their servicer to determine whether the payment deferral serves as an appropriate solution for their circumstances. Servicers may offer borrowers several solutions to resolve delinquency, including enhanced payment deferral, reinstatement, repayment plan, or loan modification.