Actions yesterday by both the Federally regulated Secondary Market makers FannieMae and FredieMac and by leading national bank, Bank of America advance the “push pause” argument or approach of forbearance on debt through the coronavirus crisis. This is a huge help for small businesses and individuals to weather the storm.
U.S. Orders Up To A Yearlong Break On Mortgage Payments
Homeowners who have lost income or their jobs because of the coronavirus outbreak are getting some relief. Depending on their situation, they should be eligible to have their mortgage payments reduced or suspended for up to 12 months.
Federal regulators, through the mortgage giants Fannie Mae and Freddie Mac, are ordering lenders to offer homeowners flexibility. The move covers about half of all home loans in the U.S. — those guaranteed by Fannie and Freddie. But regulators expect that the entire mortgage industry will quickly adopt a similar policy.
Under the plan, people who have suffered a loss of income can qualify to make reduced payments or be granted a complete pause in payments.”That forbearance is up to 12 months, depending on their particular situation,” says Mark Calabria, director of the Federal Housing Finance Agency, which oversees Fannie and Freddie. . . .
Bank Of America Offers Homeowners Relief: Its Mortgage Holders Can Now Pause Payments
Homeowners who are struggling financially due to the coronavirus pandemic may now see some relief—at least if they have a Bank of America mortgage. According to an announcement from the company early Thursday evening, homeowners with Bank of America mortgages and home equity loans can now defer their payments in the wake of the COVID-19 outbreak. Mortgage holders will need to request the deferment directly through the bank, and the waived payments will be added to the end of their loan term. There’s no formal word on how many payments can be waived or for how long, and deferments are approved on a case-by-case basis.
Other banks are expected to follow suit. The likelihood of a “yes” when asking for forbearance is increasing. Dramatically.
#PushPause on debt to save the economy from the coronavirus.