The period for which issuers of mortgage-backed securities that are guaranteed by the Government National Mortgage Association can be reimbursed for interest forgiveness on loans to active-duty members of the military has been extended by three years.
Under the Housing and Economic Recovery Act of 2008, the Servicemembers Civil Relief Act was amended to allow for an extended period of interest forgiveness for eligible borrowers of one year past their official end of duty.
In APM 10-26, Ginnie temporarily extended the period for which it reimburses issuers for SCRA shortfalls to include an additional 12 months past the borrower’s official end of duty.
The extended reimbursement period is scheduled to expire on Dec. 31.
However, the upcoming deadline is being extended until Dec. 31, 2015, according to bulletin No. APM 12-11 from the Washington, D.C.-based company.
“As a result, any loan for which a borrower is on active duty on or after July 30, 2008, and the borrower’s active duty ends prior to Dec. 31, 2015, will be eligible for reimbursement for an additional 12 months past the borrower’s official end of duty date,” the bulletin stated.
If the borrower’s active duty ends on or after Dec. 31, 2015, then the loan is not eligible for the additional one-year reimbursement period unless it is extended by Ginnie.
An update to Chapter 34 of Ginnie Mae Mortgage-Backed Securities Guide is available under the “What’s New” section of the government-owned corporation’s website.
