Homeowners are bracing for the end of forbearance plans offered by many lenders for those impacted by the novel coronavirus. The total number of loans in forbearance in the U.S. declined for the sixth consecutive week at the end of July. According to the Mortgage Bankers Association, there are currently 3.9 million homeowners in forbearance plans.
Lenders are notifying borrowers that the time for them to exit their forbearance plan is nearing giving them options to either catch-up on missed payments in a single lump sum or to modify their loan to avoid the balloon payment and simply extend the life of their mortgage.
The HEROS Act, currently being debated in Congress, is expted to include a provision to require lenders to extend forbearance plans automatically if a mortgage became 60 days delinquent between March 13 and the day the bill is enacted.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.
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