WASHINGTON—The Federal Housing Finance Agency (FHFA) has announced an extension of the temporary policy allowing the government-sponsored enterprises (GSEs) to purchase certain single-family mortgage loans in forbearance.
The policy, originally set to expire last Friday, has been extended for loans originated through August 31, 2020.
Earlier this year, the FHFA and CFPB announced a Borrower Protection Program to ensure borrowers are protected during the coronavirus pandemic and to facilitate information sharing between the organizations. The FHFA will be sharing aggregated data on loans that enter forbearance with the CFPB before delivering the loan to the GSEs, NAFCU said.
In addition, the data sharing will allow the FHFA to fulfill its obligation under the qualified mortgage (QM) patch to ensure that loans sold to the GSEs are compliant with the intent of the Dodd-Frank Act’s ability to repay provisions, NAFCU noted.
‘Help Provide Liquidity’
“Extending the Enterprises’ ability to purchase these previously ineligible loans will help provide liquidity to mortgage markets. That said, to make homeownership sustainable, lenders have a responsibility to ensure that borrowers can make their monthly mortgage payment,” said FHFA Director Mark Calabria in a statement.
The FHFA announced in April its temporary policy to allow for the purchase of single-family mortgages in forbearance which aimed to provide liquidity in mortgage markets and allow originators to keep lending.