Fannie Mae Forbearance Agreement Template

The coronavirus outbreak triggered the indulgence of Fannie Mae and Freddie Mac. Between these two institutions, they guarantee more than two thirds of all mortgages and 95% of mortgage-backed securities. A mortgage leniency agreement is not a long-term solution for delinquent borrowers. Rather, it is aimed at borrowers who have temporary financial problems caused by unforeseen problems such as temporary unemployment or health problems. Borrowers with more fundamental financial problems – such as choosing a variable rate mortgage, where the interest rate has been reduced to a level that makes monthly payments prohibitive – are usually led to seek other remedies. In addition, Fannie Mae waives the late fees to which she may be entitled and „encourages” services to „offload late fees” withheld by service providers „unless otherwise available in the lender contract.” Fannie Mae, however, indicated that the services will be responsible for advances and the service of advances, in accordance with the Fannie Mae Guide, for credits granted in all leniency. In the case of an MBS mortgage, the provider must not allow a leniency plan to go beyond the last scheduled payment date of the mortgage. In addition, the service must identify and distinguish the opening date of the pool and be familiar with the reclassification requirements (for more information, see A1-3-06, automatic reclassification of MBS mortgages). If the mortgage is a second pledge, the service provider must include a provision for the automatic closing of the leniency plan when the first pawnbroker is subject to enforcement. The service provider has the right to evaluate the borrower for a leniency plan without receiving a full BRP.

The following table sets out the eligibility criteria for a leniency plan at the time of evaluation. A leniency agreement can allow a borrower to avoid enforced enforcement until his or her financial situation improves. In some cases, the lender may extend the leniency period if the borrower`s emergency situation is not resolved on the originally agreed date. The borrower`s monthly payment must be reduced or suspended during the leniency period. When the service provider requires the borrower to make reduced payments, the payment must be made on the day or before the last day of the month in which it is due, unless the service finds that acceptable mitigating circumstances have resulted in a late payment. The supplier must contact the borrower no later than 30 days before the expiration of an indulgence plan and continue testing opaces until the QRPC is reached or the duration of the leniency plan is exceeded. The table below shows the requirements that the supplier must meet, depending on whether the CPP is met if the borrower`s emergency default is not related to a disaster event. The supplier must continue to try to reach QRPC during this first 3-month leniency period. The borrower must resume the full payment at the end of the period, plus pay an additional amount to receive the missing payments, including principal, interest, taxes and insurance. The terms of the agreement vary depending on the lender and the situation.

One of the eligibility criteria for the leniency plan are no longer met, please contact the Council to help with the use of the benefits of the careS Act supported by the state-backed enterprise loan research program or if you have any questions or comments. Once the indulgence is over, you must refund the amount that has been reduced or suspended. However, you are not required to refund the missed amount at once, even if you have this option.