Fannie Mae, Freddie Mac Consolidate Forbearance Policy
June 22, 2018
Fannie Mae and Freddie Mac recently updated their servicing guides with a new consolidated forbearance plan to help servicers assist struggling borrowers. There will now be one single policy for forbearance plans. Fannie noted that the goal was to make it easier for servicers to assist borrowers who are experiencing a short-term hardship and to simplify servicing by making it more efficient. The plan covers challenges related to unemployment, unique hardships, military service, and disaster events. This also helps simplify the GSEs’ policies on disaster assistance. Under the new requirements, the servicer may approve forbearance plans that last up to six months and may offer consecutive forbearance plans of up to 12 total months without requiring a Borrower Response Package.