The Federal Housing Finance Agency (FHFA) announced this week that Government-Sponsored Enterprises Fannie Mae and Freddie Mac are making available a new payment deferral option for borrowers. The move comes after CUNA engagement with FHFA leadership in recent weeks calling for, among other things, clarity on how the GSEs will address borrowers impacted by the pandemic.
Specifically, the payment deferral option allows borrowers who are able to return to making their normal monthly mortgage payment the ability to repay their missed payments at the time the home is sold, refinanced, or at maturity. 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, according to FHFA.
Servicers will begin offering the payment deferral repayment option starting July 1.
FHFA’s announcement also notes that, in addition to the new payment deferral option, borrowers with COVID-19 related hardships can “still utilize other options that include reinstatement, repayment plan, or loan modifications based on their individual situations.”