No Lump Sum Required for Fannie Mae, Freddie Mac Mortgages in Forbearance
Federal Housing Finance Agency (FHFA) Director Mark Calabria announced on April 27 that borrowers in forbearance with a Fannie Mae or Freddie Mac-backed mortgage are not required to repay the missed payments in one lump sum. “No lump sum is required at the end of a borrower's forbearance plan for Enterprise-backed mortgages," said Calabria. "While today's statement only covers Fannie Mae and Freddie Mac mortgages, I encourage all mortgage lenders to adopt a similar approach." In a press release, FHFA said the announcement was made "to combat ongoing misinformation" about the forbearance plan home owners are entitled to under the CARES Act. View the FHFA press release.