Monday, April 27, 2020

No Lump Sum After Forbearance

Freddie Mac CEO David Brickman stressed that borrowers using GSE, or Government Sponsored Enterprises, such as Freddie Mac and Fannie Mae, and are in loan forbearance (agreement to pause mortgage payments), will never be required to repay a lump sum at the end of the forbearance period.  In my opinion, this is good news for all homeowners as it will support the housing market now and in the future as we recover from the financial challenges many Americans are facing during the Covid-19 pandemic.  It is likely that home values will decrease in the short term, but hopefully they will recover from this natural disaster within a few years.