FHA Calls On Mortgage Industry To Help Unpaid Federal Workers With Mortgages
The government shutdown has now been effective for over 18 days and unpaid federal workers are struggling to find a way to pay their bills. As a result the Federal Housing Administration is now looking to the mortgage industry to help bring some relief for unpaid federal workers.
"The Federal Housing Administration announced late Tuesday that it is calling on all approved mortgagees and lenders to be 'sensitive to the financial hardships experienced by borrowers as a result of the shutdown,' including borrowers who are subject to furlough, layoff, or a reduction in income due to the shutdown," according to HousingWire.
"Newly released data from Zillow shows that federal employees who own homes make about $249 million in mortgage payments each month."
The FHA's letter to mortgagees explained that it expects them to continue to uphold a longstanding policy, that includes a special forbearance offer to borrowers who have lost their income due to the shutdown.
"Beyond that, the FHA said that it is also 'strongly encouraging' all approved mortgagees and lenders to waive any late fees for affected borrowers along with suspending credit reporting on borrowers who have been affected by the shutdown," according to the report.
To learn more about the FHA's letter and what it expects from mortgage lenders, click on the image above.