A Third Of Borrowers In Forbearance Aren't Using It

May 21, 2020

Director of Events

Up to 4.1 million borrowers requested forbearance during the COVID-19 pandemic, and one-third of them are still remaining current on their payments, according to The Denver Post. The publication added that some folks may have entered forbearance as a precaution with unemployment looming over many businesses.

"Those who are making their payments should be treated as current when it comes to refinancing their loans," Mark Calabria, director of the Federal Housing Finance Agency, said during a recent webinar hosted by the Mortgage Bankers Association. "In the past, a forbearance would prevent a borrower from obtaining another government-backed mortgage for up to a year. But the federal government has stepped in, reducing the waiting period to three months, and allowing guarantors like Freddie Mac and Fannie Mae to refinance borrowers who sought forbearance."

Calabria also added in a situation where borrowers still have a considerable amount of equity, things will be alright.

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Navi Persaud

Director of Events

Navi Persaud is Director of Events at NMP.

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May 21, 2020

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