Removing Barriers Blog

FHFA Announces Payment Deferral Option for Homeowners in COVID-19 Forbearance Plans

The FHFA announced that a payment deferral option would be available by Fannie Mae and Freddie Mac for homeowners who are currently in COVID-19 related forebearance. This payment deferral option allows borrowers, who are able to return to making their normal monthly mortgage payment, the ability to repay their missed payments at the time the home is sold, refinanced, or at maturity.

Currently, payment deferral is one of several repayment options. Payment deferral takes the missed mortgage payments and puts them into a payment due at the sale, or refinancing of the home, or the end of the loan.

Servicers will begin offering the payment deferral repayment option starting July 1, 2020.