Fanny Mae and Freddie Mac to Begin Purchasing Home Loans that have gone into Forbearance Just After Closing

The Federal Housing Finance Agency (FHFA), the regulators of Fannie Mae and Freddie Mac has announced that the two mortgage giants will now buy home loans that go into the government’s forbearance program, part of the recently passed CARES Act, just after they close. Up until this announcement neither Fannie nor Freddie were doing that and as a result, lending had tightened up dramatically. In prepared remarks, FHFA Director Mark Calabria said, “We are focused on keeping the mortgage market working for current and future homeowners during these challenging times. Purchases of these previously ineligible loans will help provide liquidity to mortgage markets and allow originators to keep lending.”