MGIC Investment Corp. (MTG)

[tommiegun54]

FHFA AND FHA ANNOUNCE NEW GUIDELINES FOR HOMEOWNERS EXITING FORBEARANCE

*Even though foreclosures remain at record lows, MGIC and PMI delinquency inventories will benefit from these new programs and procedures for servicers processing exits from forbearance plans*

*Of the 146,000 plans reviewed this week, 44,000 homeowners left forbearance, while the plans of 102,000 were extended*

*An estimated 7.25 million borrowers have participated in forbearance programs at one point or another throughout the pandemic, representing 14% of all homeowners with mortgages, according to Black Knight. About 72% of all participants have since left their plans, while 28%, or just more than 2 million, remain in active forbearance*

Fannie Mae, Freddie Mac and the FHA this week published new guidelines to help borrowers whose plans are expiring. Part of that includes more interest rate reduction in loan modifications to help keep borrowers in their homes.

“Allowing more families to qualify for an interest rate reduction will prevent unnecessary foreclosures, help strengthen the Enterprises’ books of business, and make sustainable homeownership a reality for more families currently living with the uncertainty of forbearance,” said acting FHFA Director Sandra Thompson.

The CFPB - Consumer Financial Protection Bureau is overlooking the process to make sure that homeowners are treated fairly and, they are given every benefit possible.