Payment Deferral

Payment deferral 

The payment deferral home retention workout option enables mortgage servicers to assist eligible homeowners who have resolved a temporary hardship and have resumed their monthly contractual payments but cannot afford either a mortgage reinstatement or repayment plan to bring the mortgage loan current. 

A homeowner may be eligible for a payment deferral plan if: 

• the mortgage loan is equal to or greater than 2 months delinquent but less than or equal to 6 months
• the loan has not received a prior payment deferral with an effective date within 12 months of the evaluation date

See the Servicing Guide for complete eligibility criteria.   

Disaster payment deferral

The disaster payment deferral workout option was created to assist borrowers with a disaster-related hardship return their mortgage to a current status after up to 12 months of missed payments. 

The disaster payment deferral is created for borrowers that:

• resolved a financial hardship related to a disaster. 
• can resume their full monthly contractual payment. 
• cannot afford a full mortgage reinstatement or a repayment plan to bring the mortgage loan current. 
• have missed up to 12 payments.

Effective Oct. 1, 2020, servicers must evaluate borrowers for a disaster payment deferral in lieu of Extend Modification for Disaster Relief and Cap and Extend Modification for Disaster Relief, which will be retired as of such date. See the Servicing Guide for complete eligibility criteria.