What is mortgage forbearance?

As the coronavirus began sweeping through the country in March, many states issued shut-down orders for businesses, putting as many as 40 million people out of work by May. On March 27, Congress passed the CARES Act to offer economic relief to those affected by the shut-downs, expanding unemployment benefits and offering mortgage forbearance to homeowners with mortgages backed or insured by the federal government, including Freddie Mac, Fannie Mae, VA and FHA.

Under the CARES Act, homeowners can ask for forbearance from their mortgage servicer and suspend payments for up to 12 months. There are now more than 4 million mortgage loans in forbearance, and we know that homeowners have many questions about the specifics of the program. We have partnered with Freddie Mac to bring you this FAQ page to answer those questions and provide updates to the program.

Our goal is to provide a resource that is continuously updated with the latest news and information on forbearance so that lenders, servicers and homeowners can work together during this period of crisis and recovery.

Sincerely —

Sarah Wheeler, HousingWire Editor in Chief

FHFA, FHA remind servicers of mortgage relief options as coronavirus spreads.

Nearly 3 million borrowers are already in forbearance.

Fannie Mae, Freddie Mac tell borrowers that mortgages in forbearance do not need to be paid back all at once.

Fannie Mae, Freddie Mac announce that borrowers in forbearance can defer all missed payments until the end of their loan.

The Federal Housing Finance Agency on Wednesday extended the foreclosure and eviction moratorium for borrowers with mortgages backed by Fannie Mae and Freddie Mac until “at least” Aug. 31.

A report from the Mortgage Bankers Association reveals the share of mortgage loans in forbearance has fallen for the fourth consecutive week.

3d rendering of a row of luxury townhouses along a street

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