Six months of relief for borrowers facing “unique hardship”

TRD 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
FHFA Director Mark Calabria and PIMCO CEO Emmanuel Roman (Getty, iStock)

PIMCO warns of danger in Fannie, Freddie privatization

PIMCO warns of danger in Fannie, Freddie privatization
Wells Fargo CEO Charles Scharf (Scharf by Win McNamee/Getty Images; Unsplash)

Borrowers sue Wells Fargo over forbearance policy

Borrowers sue Wells Fargo over forbearance policy
FHFA director Mark Calabria (Getty; iStock)

Fannie and Freddie extend eviction, foreclosure moratorium

Fannie and Freddie extend eviction, foreclosure moratorium
Here are the multifamily borrowers getting the most forbearance from Fannie & Freddie

Here are the multifamily borrowers getting the most forbearance from Fannie & Freddie

Here are the multifamily borrowers getting the most forbearance from Fannie & Freddie
Federal Housing Finance Agency Director Mark Calabria (Photo by JIM WATSON / AFP)

Fannie, Freddie will buy loans in forbearance — for a pricey fee

Fannie, Freddie will buy loans in forbearance — for a pricey fee
FHFA Director Mark Calabria (Photo by Zach Gibson/Getty Images)

Fannie, Freddie consider buying home loans in forbearance amid liquidity crunch

Fannie, Freddie consider buying home loans in forbearance amid liquidity crunch
FHFA Director Mark Calabria (Photo by Zach Gibson/Getty Images)

Fannie, Freddie offer multifamily landlords a break — strings attached

Fannie, Freddie offer multifamily landlords a break — strings attached
Ex-Fannie Mae employee in LA sentenced in bribery, kickback scheme

Ex-Fannie Mae employee in LA sentenced in bribery, kickback scheme

Ex-Fannie Mae employee in LA sentenced in bribery, kickback scheme
arrow_forward_ios

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

Loading...