May 16, 2021

MP Now News

Mortgage News

Student loan and mortgage forbearance rules are in place for 2021

Credit forbearance is something many families need right now, but borrowers should keep making payments if at all possible.  Forbearance only extends the time it takes consumers to pay the loan.

STILLWATER – The federal government’s lending program helped coronavirus-affected borrowers but ended in January. However, new guidelines have been introduced, said Cindy Clampet, assistant family resource management assistant at Oklahoma State University Extension.

“There are new loan forbearance rules that provide additional relief to people who have federal mortgage and student loan protection,” Clampet said.

To qualify for the Mortgage Forbearance Program, homeowners must:

• You are having financial difficulties due to the pandemic affecting yourself, immediate family members or their employment.

• Have a mortgage secured by federal agencies such as the Department of Housing and Urban Development, the Federal Housing Administration, the US Department of Agriculture, the Department of Veterans Affairs, Fannie Mae, or Freddie Mac.

“Other lenders may or may not offer similar indulgence offers,” Clampet said. “If you are struggling to meet your loan obligations, check with your lender to see if they have a program that can help you.”