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How Homeowners' Credit Profiles Impact Forbearance

Posted To: MND NewsWire

Freddie Mac has published research examining the characteristics of borrowers who took advantage of the availability of forbearance plans in the early part of the COVID-19 pandemic. Mortgage forbearance temporarily removes the obligation for borrowers to make their monthly mortgage payment. Forbearance plans are typically used by borrowers who experienced a sudden loss of employment, a reduction in income or damage from a natural disaster. Freddie Mac looked at internal loan-level servicing information on forbearance of its mortgages during three different periods , comparing COVID forbearance rates from March to June 2020 against a baseline period running from January 2019 to February 2020 and the 2017 storms and recovery from August to December 2017. For that later period only loans eligible…(read more)

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