On April 27, 2020, Fannie Mae and Freddie Mac each issued statements making clear that borrowers in forbearance with their Fannie Mae and Freddie Mac loans because of a COVID-19 related financial hardship will not have to pay any missed payments in a lump sum. The Federal Housing Finance Agency (FHFA) issued a corresponding statement.

The agencies advise borrowers that about 30 days before the end of the current forbearance plan, their servicer will reach out to assess which available assistance program for the borrower makes sense, or if additional forbearance is needed.

The agencies provide in their statement, or through a website link in their statement, information on options that may be available, such as a repayment plan that provides for the borrower making the missed payments over a period of time, or an actual modification of the loan. While a full repayment is an option, the agencies make clear that a borrower will not be required to immediately pay the missed payments in a lump sum.