Mortgage Loan Servicers receive direction from FHFA on the advance obligation limit for loans that are in forbearance due to COVID-19.

Under normal circumstances, Servicers who are issuers of MBS’ for Fannie Mae and Freddie Mac are obligated to advance the P & I portion of payments on loans in the MBS whether or not the borrower has actually made the payment timely.

This direction outlines the limits to this obligation under current circumstances.

Please read the entire News Release here:

https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Addresses-Servicer-Liquidity-Concerns-Announces-Four-Month-Advance-Obligation-Limit-for-Loans-in-Forbearance.aspx?utm_source=NCSHA&utm_campaign=576d69883c-EMAIL_CAMPAIGN_2019_02_06_09_58_COPY_01&utm_medium=email&utm_term=0_f00bc192e4-576d69883c-65500663