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The CARES Act provides a mortgage payment forbearance option for all borrowers who, either directly or indirectly, suffer financial hardship due to the novel coronavirus (COVID-19) national emergency. A forbearance is a temporary postponement or reduction of mortgage payments. It is not payment forgiveness. Under the CARES Act, borrowers are entitled to an initial forbearance period of up to 180 days, upon a borrower’s request. Also, upon a borrower’s request, the forbearance must be extended for up to an additional 180 days. A borrower can, at any time the borrower chooses, shorten the forbearance and resume repayment of the loan.

The Federal Housing Administration (FHA), Department of Agriculture (USDA), and Department of Veteran Affairs (VA), have aligned to provide the housing finance industry and consumers with information that outlines their responses to forbearance and loss mitigation options available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The Interagency COVID-19 Forbearance Fact Sheet for Servicers provides guidance to assist borrowers seeking forbearance on their mortgage loans that are insured or guaranteed by these Agencies. A separate Interagency COVID-19 Forbearance Fact Sheet for Consumers is also available. This fact sheet outlines the steps borrowers need to take to request forbearance for their FHA-insured or USDA- or VA-guaranteed mortgages due to the COVID-19 National Emergency.

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