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Fannie, Freddie: Mortgages in Forbearance Do Not Have to Be Repaid in Lump Sum

Mortgage News > Fannie, Freddie: Mortgages in Forbearance Do Not Have to Be Repaid in Lump Sum
Date: 04/28/2020    Fannie, Freddie: Mortgages in Forbearance Do Not Have to Be Repaid in Lump Sum

More than 2.5 million homeowners are now in mortgage forbearance due to the coronavirus shutdown. The federal CARES Act allows for up to 180 days of forbearance on GSE loans but many are confused about how their missed payments must be repaid after that time. Fannie Mae and Freddie Mac each issued statements Monday clarifying that a lump sum repayment is not required at that point. Borrowers have several options, including adding the missed payments to the end of the loan or catching up gradually. Servicers are required to contact borrowers 30 days before forbearance ends to discuss repayment preferences.

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