Mortgage Servicers Ignoring Demands From FHFA That They Offer Homeowners Coronavirus Mortgage Relief

Are Mortgage servicers ignoring demands from FHFA Director Mark Calabria? Believe it or not, they are and the FHFA is not happy. Calabria along with Fannie Mae and Freddie Mac leadership was forced to notify mortgage servicers of their obligations to their customers affected by the Coronavirus pandemic.

Calabria told the media last week:

For borrowers that may be experiencing hardship, I encourage you to reach out to your servicer. 

FHA is also is taking steps to aid borrowers. Especially borrowers who are struggling to make mortgage payments due to the COVID-19 pandemic:

FHA’s suite of loss mitigation options provides solutions that mortgagees should offer to distressed borrowers to help prevent them from going into foreclosure. 

Fannie Mae sent the email to servicers on March 5th.

Fannie and Freddie also reminded servicers to offer relief options in accordance with FHFA policies. These policies are to help borrowers make their monthly mortgage payments during the crisis.

We are actively monitoring reports about the possible spread of the coronavirus in the United States. We understand that you may have concerns about its potential impact on borrowers and your business and want to remind servicers that you can offer forbearance in accordance with our existing policies to assist borrowers.

FHFA also informed servicers that they should evaluate the borrower for workout assistance within existing FHFA perimeters. The agency also reminded servicers they must have a business continuity plan in place to conduct business operations in the event of an interruption.

Also, check out this article:

New York Coronavirus Update: Full Steam Ahead On Foreclosure Auctions!