Impact of America Rescue Plan on Mortgage Servicing operations
Impact of America Rescue Plan on Mortgage Servicing operations COVID-19 had an unprecedented impact on housing affordability for homeowners & renters alike. In order to keep the economy afloat - Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was brought into effect. One of the key provisions of CARES Act was a - 12 months forbearance period to borrowers of federally backed loans. This provided much needed mortgage relief to homeowners albeit at a higher risk of default. As the mortgage relief period headed to a close in March 2021, President Joe Biden announced the America Rescue Plan early this year to continue this beyond March. The plan not only allocates $1.9 trillion towards various state assistance programs but also extends the COVID-19 foreclosure & forbearance protection for homeowners. Soon after this announcement, the Federal Housing Finance Agency (FHFA) extended the forbearance period for Fannie Mae and Freddie Mac loans to up to 18 month...