Yesterday, May 13, 2020, the FHFA announced that beginning July 1st, Fannie Mae and Freddie Mac will have a new option to offer homeowners to repay their forborne payments.
The new program creates a “payment deferral” option for borrowers. “Payment deferral takes the missed mortgage payments and puts them into a payment due at the sale, or refinancing of the home, or the end of the loan. The borrower’s monthly mortgage payment will not change. Mortgages that exercise the payment deferral option will remain in Enterprise Mortgage-Backed Securities, subject to the terms of the trust agreements.” This applies to only the principal and interest, though, according to information on Freddie Mac’s website.
This payment option is similar to the FHA’s “partial claim” payment option, so it will help to create symmetry between the two programs.
This change is another option for current owners in forbearance in addition to the GSEs’ current options which include extending the term, lowering rates, and adding the missed payments to the principle and will certainly help some homeowners.