The guidance for servicers is out on Fannie Mae forebearance for borrowers affected by the Coronavirus. https://singlefamily.fanniemae.com/media/22261/display Statistically, this will effect almost 50% of the mortgage loans in the US.
If you service loans for Fannie Mae, this guidance definitely includes you. But what if you are not a Fannie Mae servicer? NPR last week had an article about the Fannie Mae and Freddie Mac forebearance. They stated in the article, it is assumed most lenders will follow this direction even if their loans are not insured by Fannie or Freddie. I think that is a fair assumption. No community bank wants to hear that the big out of town bank down the street is treating its customers better than they are. I believe everyone will be providing forebearance under much the same guidelines. This is not to say, as bankers we do want to help our community as much as possible and will or may have already come up with a great plan for borrowers.
I have been receiving calls already about procedures for providing a forebearance on mortgage loans. What about car loans or unsecured loans (most of you are probably saying, what’s that?). Do you have any loans where the funds were used for education? All these questions and more.
Let’s start the dialog here.