Thursday, August 04, 2011

Lawmakers push for year-long forbearance on GSE mortgages

A group of 27 lawmakers in the House of Representatives sent a letter to President Obama this week, asking his administration to extend a forbearance period to 12 months for unemployed borrowers with mortgages owned by Fannie Mae and Freddie Mac.

Under the current programs at the government-sponsored enterprises, qualified homeowners can receive a forbearance period of usually between 90 and 180 days as part of a modification agreement.

On July 7, the Federal Housing Administration and the Treasury Department required mortgage servicers to provide a 12-month forbearance to unemployed borrowers of government-insured loans. The minimum forbearance period was also extended to a full year on mortgages moving through the Home Affordable Modification Program.

Fannie and Freddie mortgages are not included in the Treasury requirements.
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