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 30 or 60 days past due (i.e., the borrower is not past due for more than two full monthly contractual payments); and 
• the past-due status has remained unchanged for at least three consecutive months, including the month of evaluation. 

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.

COVID-19 payment deferral 

The COVID-19 payment deferral workout option is specifically designed to help homeowners experiencing a financial hardship due to COVID-19. This solution helps borrowers return their mortgage to a current status after up to 18 months of missed payments.
 
The COVID-19 payment deferral program is created for borrowers who: 

• resolved a financial hardship related to COVID-19. 
• 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 15 payments.

The program does not require the borrower to complete a mortgage forbearance plan to become eligible. 

See Lender Letter LL-2021-07 for complete eligibility criteria. 

To compare payment deferral options, refer to the payment deferrals matrix.