MBA Statement on FHFA’s Payment Deferral Option
|Rob Van Raaphorst|
WASHINGTON, D.C. (May 13, 2020) - MBA President and CEO Robert D. Broeksmit, CMB, released the following statement regarding the Federal Housing Finance Agency's (FHFA) announcement that Fannie Mae and Freddie Mac will offer a payment deferral option for homeowners who are currently in forbearance due to the COVID-19 pandemic.
"MBA applauds Director Calabria and the FHFA for working with the GSEs to offer another repayment option that will ease the burden for homeowners who are affected by the COVID-19 pandemic. The payment deferral option gives mortgage servicers a practical tool to help homeowners through this unprecedented time.
"A primary benefit of this option is that a homeowner's mortgage payment will not change once the forbearance period ends. The missed payments during forbearance will be repaid when the home is sold, the loan is refinanced, or the loan reaches maturity.
"MBA has advocated strongly for additional options to assist homeowners, and we appreciate FHFA taking the industry's feedback in making payment deferrals available. We appreciate the efficiency this process will bring as it benefits borrowers, mortgage servicers, investors, and the GSEs."