(BREAKING NEWS) —
Washington, D.C. – To support homeowners and mortgage lenders, the Federal Housing Finance Agency (FHFA) is approving the purchase of certain single-family mortgages in forbearance that meet specific eligibility criteria by Fannie Mae and Freddie Mac (the Enterprises).
“We are focused on keeping the mortgage market working for current and future homeowners during these challenging times,” said Director Mark Calabria. “Purchases of these previously ineligible loans will help provide liquidity to mortgage markets and allow originators to keep lending.”
Due to the COVID-19 pandemic, some borrowers have sought payment forbearance shortly after closing on their single-family loan and before the lender could deliver the mortgage loan to the Enterprises. Mortgage loans either in forbearance or delinquent are ineligible for delivery under Enterprise requirements. However, today’s action lifts that restriction for a limited period of time and only for mortgages meeting certain eligibility criteria. Eligible loans will also be priced to mitigate the heightened risk of loss to the Enterprises from these loans. These prudential measures also ensure fulfillment of the Enterprises’ charter requirements to only purchase loans that meet the purchase standards imposed by private, institutional mortgage investors.
FHFA and the Enterprises will continue to monitor the impact of the coronavirus national emergency on the housing finance market and update our policies as necessary. Today’s actions are the latest FHFA has taken to support homeowners and the housing finance system.
AUTHOR’S NOTE: First things first … in order to find out whether Fannie Mae or Freddie Mac allegedly “own your loan”, visit either of their websites and do a “loan look-up” and supply them with your information. If it happens that they do, contact your mortgage loan servicer and explain this press release and ask them to investigate whether your loan would be eligible under this announcement. You might also contact the FHFA directly if you think you’re getting shafted by your servicer.