A borrower can pause payments if her servicer grants her a deferment or forbearance, but if a borrower fails to make her monthly payment and does not have a deferment or forbearance, her loan will become delinquent.
Another 2.7 million borrowers are in forbearance, a status in which they are not required to make payments, but may see their balances grow due to interest accumulation.
They may be eligible for forbearance on mortgage payments for up to one year if their mortgage is owned or guaranteed by Freddie Mac."
Freddie Mac's disaster policies enable servicers to extend forbearance and repayment plans for up to 12 months on a case-by-case basis without prior Freddie Mac approval for borrowers whose homes or places of employment are located in eligible disaster areas.
all forbearances cases involving rates), an appeal to competition is
10--cannot be used as a basis for forbearance for "terminating
In a separate press release, Freddie Mac said it is authorizing its servicers to verbally grant 90-day forbearances to all borrowers in eligible disaster areas, including borrowers with a mortgage modified under the Home Affordable Modification Program (HAMP) or currently in a HAMP or Standard Modification trial period plan.
Storm victims may be eligible for forbearance, loan modifications or waived late-payment charges, according to press announcements.
"The change will be retroactive to private loan forbearances
granted on or after Jan.
Until then, the bulletin reminds servicers not to report storm-related forbearances
or bankruptcies to credit bureaus, and to waive prepayment premiums for storm victims in some cases.
Financing - The Company entered into the Second Amended and Restated Forbearance
Agreement ('Second A&R Forbearance
Agreement') on July 1, 2019 with its senior lenders, stream financing providers and equipment financiers.
They also affirmatively conclude that in those instances where forbearance
was used, it was applied appropriately.