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DS5: Mark Calabria Discusses Mortgage Forbearance Programs

In this episode of DS5: Inside the Industry, Federal Housing Finance Agency (FHFA) Director Dr. Mark A. Calabria discusses what regulators are doing to assist homeowners, lenders, and servicers, including the mortgage forbearance programs being offered to homeowners.

Calabria recently urged borrowers to "be honest," as borrowers do not need to show any proof of financial hardship in order to skip payments for up to a year.

“We’re operating on the honor system,” Calabria said. “We are asking and we’re putting together a script for servicers. This is supposed to be limited to if you’ve lost your job, you’ve lost income. Please, if you haven’t lost your job, continue paying. If you can pay your mortgage please do so because we really need to focus on the people who can’t.”

Despite the honor system in place, borrowers will still have to provide documentation when setting up their repayment plans.

According to Calabria, up to 2 million borrowers could be applying for loan forbearance by May and said that mortgage servicers, as well as Fannie and Freddie, could handle that if it was just for a few months.

You can watch the full episode here or via the embed below (Calabria begins at 3:10).

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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