Fannie Mae and Freddie Mac have introduced their payment deferral solution at the direction of the Federal Housing Finance Agency. Both agencies simultaneously sent out memos in their respective newsletters stating that the changes will be effective immediately, unless otherwise noted.
"The Payment Deferral is designed to provide relief to eligible Borrowers who have the financial capacity to resume making their monthly payments, but who are unable to afford the additional monthly contributions required by a repayment plan," said Freddie in its announcement. "An eligible Borrower will be brought current by deferring delinquent principal and interest (P&I), creating a non-interest-bearing forborne balance that will become due at the earlier of the Mortgage maturity date, payoff date, or upon transfer or sale of the Mortgaged Premises."
Borrower eligibility will be assessed followed by a mortgage and property eligibility. Next, the terms of payment deferral will be evaluated an escrow analysis can be performed but it is not required for servicers to run one.