Refinance or Purchase After Forbearance

May 19th, 2020 – Fannie Mae released an important update to its guidance on the Impact of COVID-19 on Originations:  Temporary eligibility requirements for purchase and refinance transactions.

This was much-anticipated guidance as the prospect of being locked out of traditional financing options for 12 months following a forbearance due to COVID-19 is creating a lot of pressure for lenders as homeowners start to plan ahead and taking advantage of

Mortgage Forbearance Fears

As part of the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) recently signed into law by the President, forbearance has made the news in a big way.  The CARES Act provides for some additional forbearance protections for homeowners that do not normally exist outside of the COVID-19 pandemic.

Under the CARES act, the servicer of any Federally backed mortgage is encouraged to waive all late fees, penalties and interest, and

The COVID-19 coronavirus pandemic hit everyone hard. Millions of lives disrupted.

The economy shuddered to a slow roll in a very short period of time, and millions of families are experiencing financial hardship.

This hardship is amplified if you are a homeowner with a mortgage payment.

On March 27th, 2020 the Federal CARES Act was passed to offer a clear path to payment relief options for homeowners impacted by the near Nationwide shutdown.

If you have a VA home