Responses to COVID-19 from Fannie Mae & Freddie Mac

Responses to COVID-19 from Fannie Mae & Freddie Mac
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Article by:

Dennis R. Baranowski, Esq.

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Fannie Mae Response

  • Foreclosure sales and evictions of borrowers are suspended for 60 days
  • Homeowners impacted are eligible for a forbearance plant to reduce or suspend their mortgage payments for up to 12 months
  • Credit bureau reporting of past due payments as result of this emergency are suspended.
  • Homeowners in a forbearance plan will not incur late fees
  • After forbearance, a servicer must work with borrower on a permanent plan to help maintain or reduce monthly payment amounts as necessary, including loan modification

Freddie Mac Response

  • Providing mortgage forbearance for up to 12 months
  • Waiving assessments of penalties and late fees
  • Halting all foreclosure sales and evictions of borrowers living in Freddie Mac-owned homes until at least May 17, 2020
  • Suspending reporting to credit bureaus of delinquency related to forbearance
  • Offering loan modification options that lower payments or keep payments the same after the forbearance period
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