05/31/2023 | Press release | Distributed by Public on 05/31/2023 13:52
As borrowers near the end of forbearance and/or deferral period, some may be able to qualify for a temporary loan modification due to a related financial hardship. For loss mitigation tied to COVID-19, our Mortgage Partnership Finance® (MPF®) Traditional products also offer permanent loan modifications. In an effort to simplify the process and provide additional relief, FHLBank Chicago will now allow permanent loan modifications for all conventional MPF Traditional loans, effective immediately.
Servicers should follow the existing COVID-19-related permanent loan modification guidance when evaluating borrower eligibility, which can be found in MPF Announcement 2022-12 and a presentation pertaining to the topic.