Skip to main content

Mortgage Lenders Could Be In For More Chaos After Forbearance Ends

Apr 28, 2020
Big wave crashing.
Director of Events

While mortgage servicers have been inundated with the surge in forbearance requests this month, experts believe that it will get worse as forbearance periods come to an end. Servicers could be in for another series of backlogs, delays and possibly dealing with foreclosures all at once.
 
According to The Real Deal, which cited a recent Bloomberg report, Fannie Mae, Freddie Mac and the Federal Housing Finance Agency are currently working to ensure that the transition out of the forbearance period is smoother. That being said, not much else has been reported out of those agencies as to how they will address a potential second wave of inundation.
 
"Mortgage Bankers Association CEO Bob Broeksmit said he expects Fannie and Freddie to announce a new repayment option in the next two weeks," according to the report. "Hopefully, this new option will not be overly complex and can work for a lot of borrowers."
 
Click here to read more about the second wave that may come as forbearance ends.

 
About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Apr 28, 2020
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024