Fannie Mae is updating its requirements to allow mortgage servicer to approve forbearance to recently unemployed borrowers.
Using the Fannie Mae Unemployment Forbearance program, the mortgage servicer no longer needs approval from the government-sponsored enterprise.
But there are some limits still.
The forbearance period cannot exceed 6 months.
And the borrower’s mortgage payment must be in imminent default or the mortgage loan delinquency is less than or equal to 12 months as of the evaluation date.
All other applicable Unemployment Forbearance eligibility requirements are met, as stated in the Servicing Guide.
Fannie Mae made the announcement in a recent update to said guide.
"Also, as a reminder, the servicer is authorized to offer forbearance for no more than six consecutive months while the mortgage loan remains in the MBS pool," the update to the servicing guide stated.
"If forbearance extends beyond the sixth consecutive month of forbearance, then the mortgage loan must be removed from the MBS pool immediately after six months of forbearance have been reported," it added.