May 19, 2020
The Federal Housing Finance Agency is now offering a new mortgage payment deferral option for borrowers affected by coronavirus.
It allows borrowers who skipped payments during the pandemic to repay them at the end of their loan term instead of in one lump sum.
The change comes shortly after North Carolina Attorney General Josh Stein and a bipartisan coalition of 35 attorneys general sent a letter urging the organization to make this change.
“I am pleased that the FHFA is taking this action on behalf of struggling borrowers,” said Stein. “I had encouraged the agency to make this change to repayment rules to provide meaningful and necessary financial relief for people financially distressed during the COVID-19 pandemic.”
Under the CARES Act, eligible borrowers affected by the pandemic were allowed to pause mortgage payments for 180 days but at the end of that period all payments would have been due in a lump sum.
The recent action taken by the FHFA means that Freddie Mac and Fannie Mae will allow borrowers to repay their missed payments at the end of their loan, and borrowers are eligible to shift as much as 12 months of payments to the end of the loan term if necessary.