Six months of relief for borrowers facing “unique hardship”

New York /
Aug.August 02, 2010 09:30 AM

A new Fannie Mae policy allows homeowners facing “unique hardships” to skip up to six months of mortgage payments and tack them on to the end of their mortgage term, according to the New York Times. The new allowance, effective yesterday, applies to borrowers who have been forced to leave their homes while making necessary repairs to defective drywall, as well as to those whose spouses are injured or killed in military duty. Forbearances of this kind aren’t new: in the past, many homeowners facing drywall problems had asked their mortgage servicers for accommodations. But servicers had to then, in turn, ask Fannie Mae for permission. Now servicers have the authority to grant forbearances for up to six months and to inform credit agencies that these “unique hardship” borrowers are not delinquent. Fannie Mae estimates, though, that only half of those borrowers who qualify will actually take advantage of the new policy. [NYT]

 

Related Articles

arrow_forward_ios
Borrowers can now get a 30-year fixed-rate jumbo mortgage for $2 million at 2.65%. (iStock)
Jumbo mortgage lenders invade Fannie and Freddie’s turf
Jumbo mortgage lenders invade Fannie and Freddie’s turf
Freddie Mac’s economists said the slowdown will be caused by a hike in mortgage rates and limits on housing supply. (iStock)
Fannie, Freddie say housing market could see slight hiccup
Fannie, Freddie say housing market could see slight hiccup
New Fannie Mae and Freddie Mac restrictions mean higher mortgage rates for some. (Unsplash)
Mortgage rates on second homes rise as Fannie, Freddie pull back
Mortgage rates on second homes rise as Fannie, Freddie pull back
Former Freddie Mac CEO David Brickman and Meridian Capital Group CEO Ralph Herzka (Freddie Mac; Herza by Studio Scrivo)
Ex-Freddie Mac CEO launching lending platform with Meridian, Barings
Ex-Freddie Mac CEO launching lending platform with Meridian, Barings
Treasury Secretary Steven Mnuchin with Donald Trump. (Getty)
Treasury quits bid to privatize Fannie Mae, Freddie Mac
Treasury quits bid to privatize Fannie Mae, Freddie Mac
FHFA director Mark Calabria (Getty; iStock)
Federal housing agency extends forbearance options for multifamily landlords
Federal housing agency extends forbearance options for multifamily landlords
Future of Fannie, Freddie privatization is uncertain
Future of Fannie, Freddie privatization is uncertain
Future of Fannie, Freddie privatization is uncertain
(iStock)
Foreclosure filings are way down. There’s a reason
Foreclosure filings are way down. There’s a reason
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...