The Federal Housing Finance Agency announced last month that servicers who collect payments on mortgages backed by Fannie Mae and Freddie Mac will only be required to cover four months of missed payments on loans in forbearance. But the big question was who will pay the missed payments after that four months. GSEs revealed this week they are preparing to cover the remaining advances as long as the loans are in forbearance. Loans in forbearance will also remain in MBS pools for as long as they are in forbearance, unlike the GSE’s previous policies.
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