Yesterday brought some good news from the Mortgage Bankers Association, (MBA) to those people utilizing the Covid-19 mortgage forbearance option during this difficult time.
FHFA Director Mark Calabria, speaking Tuesday, May 19th, 2020 at a Mortgage Bankers Association event called, “MBA Live: State of the Industry” offered the latest mortgage forbearance position the federal government has taken for those who have moved their mortgage loan into forbearance. If those borrowers have successfully continued making their payments or have reinstated their mortgages and have made 3 successful post forbearance payments then they will be allowed to conduct a new mortgage transaction. This good news will allow those people the ability to take advantage of lower interest rates for refinancing or purchasing much quicker than standard waiting periods normally followed in the past.
The article stated: “The Federal Housing Finance Agency which has overseen the government-sponsored enterprises’ safety and soundness since 2008, said borrowers are eligible to refinance or buy a new home if they are current on their mortgage (i.e. in forbearance but continued to make their mortgage payments or reinstated their mortgage). Borrowers are eligible to refinance or buy a new home three months after their forbearance ends and they have made three consecutive payments under their repayment plan, or payment deferral option or loan modification.”
Please access the Mortgage Bankers Association website below to read the entire article.
- Mortgage Bankers Association Article Link: