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FHFA extends GSE loan forbearance policy through Sept. 30
The Federal Housing Finance Agency (FHFA) Wednesday announced an extension of its temporary policy allowing the government-sponsored enterprises (GSEs) to purchase certain single-family mortgage loans in forbearance. The policy, originally set to expire Monday, has been extended for loans originated through Sept. 30, 2020.
The FHFA announced the temporary policy in April, which aimed to provide liquidity in mortgage markets and allow originators to keep lending; Wednesday’s announcement marks the second extension made to the temporary policy.
NAFCU is working closely with the FHFA to address credit union mortgage servicer concerns and had previously urged the agency to provide relief to servicers that, without action by the FHFA, would have to continue making principal and interest payments to the GSEs on loans in forbearance. The FHFA in April heeded NAFCU's call and announced it will provide a four-month limit on advances of principal and interest payments for loans in forbearance sold to the GSEs.
In addition, NAFCU continues to voice concerns about the GSEs' policy to impose a 0.5 percent fee on most mortgage refinance loans. NAFCU came out strong against the adverse market refinance fee when it was announced, arguing that it would hurt credit unions and their mortgage borrowers as they try to recover from the coronavirus pandemic, and its advocacy achieved at least a delay of the policy until Dec. 1.
NAFCU will continue to monitor the FHFA's efforts to support liquidity in the mortgage market and work with the agency to ensure credit unions' concerns are addressed. Access the association’s coronavirus resources.