MBA Statement on FHFA’s Enhanced Payment Deferral Policies
March 29, 2023
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WASHINGTON, D.C. (March 29, 2023) — MBA's President and CEO Bob Broeksmit, CMB, released the following statement on the Federal Housing Finance Agency’s (FHFA) announcement allowing borrowers facing financial hardship to defer up to six months of mortgage payments:
“MBA commends FHFA for applying lessons learned from the COVID-19 pandemic by making payment deferrals a key part of Fannie Mae’s and Freddie Mac’s loss mitigation toolkit. The use of payment deferrals during the pandemic helped struggling borrowers stay in their homes.
“MBA recommended in our recent white paper on the future of loss mitigation that FHFA and FHA resolve temporary hardships through payment deferrals and partial claims. Better alignment – regardless of the reason for hardship or who insures or guarantees the loan – will improve the consumer experience and lead to consistency and simplicity when addressing future adverse market conditions, national emergencies, and natural disasters.
“We will continue to work with FHFA on efficient, scalable home retention options for distressed borrowers, while protecting taxpayers and ensuring secondary market certainty and liquidity.”