Here to Help

COVID-19 has upended everyday life for almost everyone in America. You could be one of the tens of millions of Americans who are wondering if they’ll be able to make their mortgage next month. Amid the uncertainty, you can always turn to Fannie Mae as a home for help and a source of reliable information about all your options for relief.

There are several important things you should know about forbearance plans:

A forbearance plan is a temporary reduction or suspension of your mortgage payments. Entering into a forbearance plan can give you some financial breathing room.

If you own your home and are experiencing financial hardship as a result of COVID-19, you may be able to receive a forbearance plan.

A forbearance plan doesn’t erase the amount you owe on a mortgage. At the end of the forbearance plan, you do have to repay what you missed, but you do not have to repay it all at once. Mortgage assistance options are available. You will not be charged late fees during your forbearance plan as long as you are performing according to the terms of the plan.

Contact your mortgage servicer to get started and to learn about other options for mortgage assistance.

Fannie Mae can help you learn more about what to expect on a forbearance plan and when you’re ready to move forward, you can start here.

Credit Bureau Reporting

It’s also helpful to know that the rules about credit bureau reporting for loans in a forbearance plan have changed for those facing hardship due to COVID-19.

What that means for you is that if you were current on your loan before you started a forbearance plan or another accommodation covered by the CARES Act, you will be reported as current to the credit bureau as long as you continue to make payments as required by the plan or as long as no payments are required under the plan.

After Forbearance

You have several different options for how to exit your forbearance plan. The key thing to remember is that there are options other than paying your missed payments all at once. Your options include:

  • Reinstating your loan, which means that, if you are in a financial position to do so, you will pay back any missed amounts at once. After you reinstate, you can continue to pay your mortgage under the terms you originally agreed to before you received a forbearance plan.
  • A repayment plan that allows you to spread out the missed amounts created by your forbearance plan over a set time frame (e.g., 3, 6, 9, 12 months). You will have to make monthly repayment plan payments in addition to your existing monthly mortgage payments.
  • A COVID-19 payment deferral may be available if you can resume your monthly mortgage payments but cannot afford a full reinstatement or a repayment plan. With this solution, missed amounts are added as a non-interest bearing principal balance that is due at maturity or the earlier of sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing UPB.
  • A loan modification is another form of mortgage help, specifically for borrowers who need payment relief as a result of a permanent financial hardship (like a reduction in income or an increase in expenses). A loan modification is a change in the terms of a loan so that the monthly payment may be more affordable. Depending on the situation, the loan modification can mean reducing your interest rate or extending the maturity date of your loan.

Prior to the end of your forbearance plan, your mortgage servicer will reach out to discuss your situation and evaluate potential solutions.

How you can get help

With everything happening so quickly, it can be hard to know what to do first.

If you think you might have trouble making a mortgage payment, your first call should be your mortgage servicer.

Your mortgage servicer is the bank or company that you make your mortgage payments to each month. It may help to have all your financial information including your account number when you call.

No matter what the future brings, Fannie Mae will be here to help, providing you with the reliable information you need about forbearance plans and other kinds of mortgage assistance.

Resources


Fannie Mae’s Disaster Response Network

If Fannie Mae owns your mortgage, our Disaster Response Network can offer guidance on staying in your home.


Loan Lookup Tool

This simple tool can help you find out if Fannie Mae owns your mortgage. If Fannie Mae owns your mortgage, our Disaster Response Network can help you stay in your home.


Federal Housing Finance Agency

The FHFA site can keep you updated on COVID-19 related changes across the mortgage industry.