Skip to main content

Fannie Mae COVID-19 Payment Deferral Provides Assistance To Impacted Borrowers

NMP Staff
Nov 02, 2020
Fannie Mae COVID-19 Payment Deferral provides assistance to impacted borrowers

sponsored content

 

When the financial impacts of COVID-19 hit families earlier this year, millions of people contacted their mortgage servicers to set up a forbearance plan. Today, with many forbearance plans soon to expire, we are here to help borrowers understand their options to repay the amount owed.

Fannie Mae offers multiple repayment options, including a new option to help. In May, we announced the COVID-19 payment deferral, which became available on July 1. This repayment option offers homeowners the ability to regain their financial footing while resolving their mortgage delinquency.

Here’s how it works: The repayment option lets eligible homeowners defer unpaid mortgage payments. The deferred amounts become a non-interest bearing balance due and payable at maturity of the mortgage loan, or earlier upon the sale or transfer of the property, refinance of the mortgage loan or payoff of the interest-bearing balance of the mortgage loan.

For servicers, executing the COVID-19 payment deferral is seamless for a number of reasons. First, there is no trial period plan, where the borrower must demonstrate that they can make consecutive monthly trial payments before the option can be finalized. Second, because we jointly developed this workout option with Freddie Mac at the direction of FHFA, it is consistent regardless of who owns the loan. Finally, we added new automation to Servicing Management Default Underwriter™ (SMDU™) to easily process these transactions.

Every homeowner’s financial situation is different. While the COVID-19 payment deferral will not work for everyone, we are helping our servicers understand all available options to make the best decision for each borrower.

Click here for more information about Fannie Mae's COVID-19 payment deferral assistance.

About the Author

Photo of Cyndi Danko

Cyndi Danko is Vice President, Credit Risk Policy, for Fannie Mae’s Single-Family Risk Management team and is responsible for all aspects of credit risk policy maintaining the risk management processes of the Single-Family Business. Previously, Danko was Vice President, Risk Management Technology Solutions in Single-Family Digital Products. She was responsible for managing the company’s core credit risk management applications, including Desktop Underwriter (DU), Collateral Underwriter, and the Collateral Data Delivery System. Danko has a Bachelor of Business Administration in Finance and a Master’s in Business Administration from Marymount University.

sponsored content

 
Published
Nov 02, 2020
Rocket Pro Announces Major Initiatives

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021
FormFree Taps Amazon Web Services For Consumer Financial Identity Solutions

FormFree will use Amazon's blockchain technology to manage its latest consumer Financial DNA solution and its newly introduced FormFree Exchange.

Tech
Oct 19, 2021
Synergy One Lending Increases Its Capital By $50M

San Diego-based Synergy One Lending Inc. completed a $50 million corporate note financing with a consortium of institutional investors.

Industry News
Oct 19, 2021
TransUnion Sees Untapped Growth Opportunity For The Mortgage Industry

A study conducted by TransUnion, which explores the creditworthiness of low-to-moderate income consumers, revealed that the segment represents a $300 billion growth opportunity for the mortgage industry.

Analysis and Data
Oct 19, 2021
Zillow Stock Falls After It Halts Buying Houses To Flip

Zillow’s stock fell nearly 10% Monday after the company announced its Zillow Offers division would stop buying homes.

Industry News
Oct 19, 2021
MBA Swears In New Officers For 2021-22

Kristy Fercho, executive vice president and head of home lending at Wells Fargo, is the new chairman.

Industry News
Oct 18, 2021