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Announcement 2020-056 - Loans in Forbearance

Effective with loans purchased on or after May 1, 2020, the following updates pertain to loans that enter forbearance after purchase:

 

  • Effective for agency loans purchased on or after May 1, 2020, NewRez will align its policies with Fannie Mae LL-2020-06 and Freddie Mac Bulletin 2020-12. Conventional purchase or rate and term loans entering into forbearance (as defined in the applicable agency guidance) after purchase by NewRez but prior to the loan being sold to either Fannie Mae or Freddie Mac will be assessed the LLPAs of 5% (for first time homebuyers) or 7% (for all other loans).   This LLPA is in addition to all other applicable LLPAs and are not subject to the LLPA cap.
  • Conventional cash-out transactions are subject to repurchase if the loan enters forbearance within 15 days of purchase by NewRez.
  • A $1,000 administrative fee will be charged for each conventional or government loan that enters forbearance within 60 days of the NewRez purchase date, regardless of whether such loan has been sold to an investor.

 

As a reminder loans currently in forbearance are not eligible for purchase by NewRez.

 

Please contact your NewRez Account Executive with any questions.