Freddie Mac recently issued guidance to help servicers navigate working with borrowers impacted by COVID-19.
Bulletin 2020-21 provides servicers with updated COVID-19 Payment Deferral incentive amounts, ranging from $500 to $1,000 depending upon the modification to the borrower’s existing payment plan. The amounts discussed may be earned by the servicers, “in accordance and compliance with all requirements as described” in the Bulletin and any subsequent guidance. Servicers are also reminded of the forbearance plan requirements originally touched upon in Bulletin 2020-10, requiring that servicers make forbearance plans available regardless of a borrower’s delinquency, and provide a realistic plan for the forbearance as requested by the borrower and based upon their particular circumstances.
Lastly, borrowers who previously modified their monthly payments under the Home Affordable Modification Program (HAMP) may maintain their “good standing” under HAMP, even while taking advantage of the available COVID-19 forbearance plans.
All changes announced in the Bulletin are effective immediately.