Adding to the potential problems, many borrowers who are in forbearance are closing in on the six-month limit and could be forced to exit forbearance unless they reach an agreement with their servicers.
The National Consumer Law Center's Diane Thompson said that forbearance and repayment options should be clear and streamlined to avoid confusing servicers and consumers , according to the report. Thompson also emphasized the need for better clarity among government guided systems. 3.
The VA’s new program allows servicers to offer a “partial claim” option to VA-guaranteed borrowers to bring their loans current. The partial claim option is modeled after a long-standing FHA program. See NCLC’s Mortgage Servicing and Loan Modifications Chapter 8.
The new final rule delays any obligation to repay the past forborne mortgage payments, allowing homeowners to resume their normal monthly mortgage payment. The VA’s new partial claim program does not help borrowers who now cannot afford to pay their new regular mortgage payments.