Fannie Mae revealed its new Unemployment Forbearance Program which allows mortgage servicers to assist borrowers who have a financial hardship due to unemployment. Mortgage servicers are required to implement this new program by March 1 for all Fannie Mae-owned and backed loans.
Mortgage servicers can now provide up to six months of relief for eligible unemployed borrowers and do not have to get Fannie Mae's approval to do so. In addition, borrowers can also apply for an additional six months of forbearance for a total of twelve months of assistance.
Freddie Mac also has a similar program that goes into effect February 1st. Freddie Mac is allowing servicers to provide 6 months of forbearance without prior Freddie Mac approval and an additional 6 months with prior approval.
Homeowners must contact their mortgage servicer to request the forbearance and to see if they qualify.