FHFA Announces Enhanced Payment Deferral Polices for Borrowers Facing Financial Hardship

The Federal Housing Finance Agency (FHFA) announced on Wednesday (3-29-23) that both Fannie Mae and Freddie Mac (“the Enterprises”) will enhance their payment deferral policies to allow borrowers facing financial hardship to defer up to six months of mortgage payments. The enhanced payment deferral policies will promote sustainable homeownership and will further support the safety and soundness of the Enterprises.

According to the announcement, since 2011, FHFA and the Enterprises have worked to develop policies to help servicers better resolve mortgage payment delinquencies with the goal of keeping struggling borrowers in their homes whenever possible, while minimizing losses to the Enterprises and taxpayers.

In a statement accompanying the announcement, FHFA Director Sandra L. Thompson said:

“The Enterprises completed more than one million COVID-19 payment deferrals during the pandemic, helping borrowers nationwide stay in their homes. Based on the success of the COVID-19 payment deferral, we are making this solution a key part of our standard loss mitigation toolkit that is available to all borrowers with eligible hardships.”