Magazine article Mortgage Banking

Lenders, GSEs Ease Mortgage Forbearance for Military. (Business Alert)

Magazine article Mortgage Banking

Lenders, GSEs Ease Mortgage Forbearance for Military. (Business Alert)

Article excerpt

GOVERNMENT-SPONSORED ENTERPRISES (GSEs) Fannie Mae and Freddie Mac, as well as their lender partners, have gone beyond the Soldiers' and Sailors' Civil Relief Act (SSCRA) mandates to further ease the burden on military personnel when they seek special mortgage forbearance due to hardship. Military personnel will be required to submit their active-duty orders as the only needed proof of hardship, instead of the full range of financial statements required with standard forbearance, thus streamlining the process for a forbearance request.

Fannie Mae will ask its lender partners to report military indulgence, rather than forbearance, to the credit bureaus, thus protecting the borrower's credit history. This enhanced special forbearance is a temporary change to Fannie Mae's guidelines and may be requested by borrowers through Dec. 31, 2003, unless otherwise extended by the company. To receive the special forbearance, active-duty personnel who qualify for relief under SSCRA must contact their lenders to request relief. The lender will then work with the borrower to determine an appropriate payment reduction, forbearance period and repayment plan based on the individual's circumstances. In addition, Fannie Mae and its lender partners are working with HUD to extend special forbearance on all FHA and Department of Veterans Affairs (VA) loans covered by SSCRA. …

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