On March 16, 2020, Advantage MPP published MPP Bulletin 01-20 regarding COVID-19 Relief for Borrowers. The text of the bulletin can be read below.
FHLBank Indianapolis recognizes these are unique times and borrowers may be impacted in various ways. Primarily, the implementation of social distancing may impact some borrowers’ ability to work and receive an otherwise expected level of income.
Temporary Payment Relief (Forbearance) due to Hardship
Under forbearance, the servicer can agree to reduce or suspend the borrower’s monthly payments for a specified period. After that, the borrower must agree to resume his or her regular monthly payments and to pay additional money at scheduled intervals toward repayment of the amount reduced or suspended. The term of forbearance may be granted up to 90 days from the date of the first reduced or suspended payment. Written approval from FHLBank Indianapolis is required for longer periods.
Assess the impact on the borrower:
Permanent Relief Options
- All permanent relief options, including modifications, will still require review and approval by FHLBank Indianapolis.
This situation is fluid; Advantage MPP staff will continue to monitor and provide updates as this situation evolves. As always, please contact our staff with any questions related to this bulletin.