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

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

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

1735 York Avenue and Bonjour Capital's Charles Dayan (Credit: Google Maps)

Dayan’s Bonjour Capital inks $115M refi for Upper East Side building

FHFA director Mark Calabria is ready to set Fannie and Freddie free, while Wall Street worries about potential risks.

Wall Street warns against privatizing Fannie and Freddie without Congress guarantee

FHFA director Mark Calabria (Credit: Federal Housing Finance Agency and Getty Images)

Trump official to pressure Congress to privatize Freddie and Fannie

FHFA director Mark Calabria (Credit: Federal Housing Finance Agency and iStock)

Trump’s move to take Fannie and Freddie private could mean higher mortgage costs

President Donald Trump (Credit: Getty Images)

Mortgage guarantors Fannie Mae and Freddie Mac to return to private control

Corelogic’s chief counsel is leaving the company as it deals with a DOJ inquiry

Corelogic’s chief counsel is leaving the company as it deals with a DOJ inquiry

arrow_forward_ios
Loading...