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Mortgage Relief Announcements Amidst COVID-19 Pandemic

Mortgage Relief Announcements Amidst COVID-19 Pandemic

Amidst the COVID-19 Pandemic, there are various MORTGAGE RELIEF ANNOUNCEMENTS from various agencies and even from Federal and State governments.  We would like to share this information as they become available to us.  Home Mortgage Alliance Corporation (HMAC), NMLS# 1165808 is dedicated to providing support for our various branches and direct lender partners across 44+ states. Do you know of any mortgage relief announcement in your state?  Please comment below and let others know.

Fannie Mae, Freddie Mac, HUD suspending all foreclosures and evictions

President Donald Trump announced Wednesday that the Department of Housing and Urban Development is suspending all foreclosures and evictions until the end of April.

HUD later announced its official policy, stating that the Federal Housing Administration is enacting an “immediate foreclosure and eviction moratorium for single-family homeowners with FHA-insured mortgages” for the next 60 days.

That matches the policy announced Wednesday by the Federal Housing Finance Agency.

The FHFA announced Wednesday that it is directing Fannie Mae and Freddie Mac to suspend foreclosures and evictions for “at least 60 days.”

That would mean the moratorium lasts through mid-May, at least.

Source: Housing Wire

Fannie Mae, Freddie Mac will let borrowers facing hardship defer two months of mortgage payments

The two biggest sources of mortgage financing are giving some leeway to borrowers who’ve fallen behind. Fannie Mae and Freddie Mac unveiled today a new “payment deferral” option that will allow borrowers facing a hardship to defer two months of their mortgage payments until the end of their mortgage.

The program was set to be announced later this year, but with the coronavirus wreaking havoc on the country, the GSEs are rolling out the program early to give mortgage servicers another way to help borrowers now. (Source: Housing Wire)

New York governor announces 90-day mortgage relief

To alleviate some of the financial hardships New Yorkers are experiencing due to the spread of coronavirus, Gov. Andrew Cuomo announced a 90-day mortgage relief for homeowners across the state.

“We’re not exempting people from the mortgage payments, we’re just adjusting the mortgage to include those payments on the backend,” he said.

According to Cuomo, this mortgage relief includes:

  • Waive mortgage payments based on financial hardship
  • No negative reporting to credit bureaus
  • Grace period for load modification
  • No late payment fees or online payment fees
  • Postponing or suspending foreclosures

Souce: CNN

Mortgage Rates Are Rising

Update on March 27, 2020. Mortgage rates drop as the Fed moves to stabilize the economy.  The average U.S. rate for a 30-year fixed mortgage falls to 3.5%. (Source)

Despite interest rate cuts, we are seeing a trend of rising mortgage rates.  This is a necessary move in order to keep lenders and the mortgage industry afloat and provide continuity.

The average U.S. fixed rate for a 30-year mortgage increased to 3.65% this week, as lenders seemingly inflated prices in an effort to deal with a surge in both refinance and purchase demand.

While the rate sits 29 basis points above last week’s level of 3.36%, it’s still much lower than the 4.28% of the same week in 2019, according to Freddie Mac.

Regardless, the record low-interest rates of a few weeks ago are now a thing of the past. But that doesn’t mean they may not come back again.

Bank of America will allow borrowers to pause their mortgage payments

Bank of America announced Thursday afternoon that it is extending “additional support for consumer and small business clients experiencing hardship from the impact of the coronavirus.”

Included among those support options is the ability to defer mortgage payments.

According to the bank, Bank of America mortgage and home equity customers can request to defer their payments while the virus crisis rages. The payments would then be added to the end of their loan.

Basically, borrowers can get a break on their payments now but will have to make those payments eventually.

According to the bank, the payment deferral will be available on a case-by-case basis and can be extended on a month-to-month term.

The bank added that there will be no negative credit bureau reporting for up-to-date clients.

But that’s not the only step Bank of America is taking for its 66 million consumer and small business clients.

The bank is also pausing foreclosure sales, evictions and repossessions.

Source: Housing Wire.

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