Skip to main content

FHFA Extends Policy Allowing Purchase Of Qualifying Loans In Forbearance

Nov 12, 2020
FHFA headquarters
Director of Events

The Federal Housing Finance Agency approved the extension of the temporary policy that allows the purchase of certain single-family mortgages in forbearance, met by specific eligibility criteria set by Fannie Mae and Freddie Mac. The policy will be extended to Dec. 21, 2020.

The FHFA and the Consumer Financial Protection Bureau (CFPB) announced the Borrower Protection Program to protect during the coronavirus pandemic, as well as to facilitate related information sharing. To ensure that borrowers are qualifying for mortgages they can afford, FHFA will continue sharing aggregated data with the CFPB on loans that enter forbearance before delivery to the Enterprises, according to a press release. With data sharing the FHFA will be able to fulfill its obligation under the "Qualified Mortgage Patch" to ensure that loans sold to the Enterprises are complying with the intent of Dodd-Frank's ability to repay provisions.

"Eligible loans will continue to be priced to mitigate the heightened risk of loss to the Enterprises from said loans," according to the FHFA. "These prudential measures also ensure fulfillment of the Enterprises' charter requirements to only purchase loans that meet the purchase standards imposed by private, institutional mortgage investors."

The FHFA also added that it will continue to monitor the COVID-19 pandemic's impact on renters, borrowers and the mortgage market and update policies as necessary.

Want more Non-QM news? We've got a newsletter for you!

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
Nov 12, 2020
Fannie, Freddie Now Allow Lenders To Use VantageScore 4.0

Lenders will keep tri-merge credit scoring model; what this shift means

President Trump Signs Big Beautiful Bill — Here's What It Means For Mortgage And Housing

What you need to know about the law as a mortgage professional and share with your clients

FHFA Chief Officially Calls For Investigation Of Federal Reserve Chairman Powell

Alleges Powell lied in testimony to Congress regarding Fed building renovations, says Fed Chair should be fired

BBB Will Impact Homeowners, Buyers

U.S. House and Senate must agree on certain tax, mortgage insurance premium deductions

FHFA, Fannie, Freddie Rebrand CSS To U.S. Financial Technology To Boost Recognition, Sell More MBS Services

Meanwhile, FHFA also considering renaming LLPAs for mortgages the GSEs acquire

Amid Calls For His Resignation, Fed Chairman Talks Interest Rate Cuts, Housing Affordability

Powell points to potential inflation increases as rationale for no rate cuts as Fed board members signal openness to lower rates