Borrower hardships can happen. Enact's Homeowner Assistance Program is ready to assist you in finding solutions that help keep people in their homes. Enact offers delegation for most workout options under these program parameters. Monthly reporting is required.
We're committed to supporting our servicers with flexibility of options as you work through potential impacts of the COVID-19 pandemic to borrowers and your business. Visit our COVID-19 resource page for policy details and guidance. View our tutorial on Default Management and Workout Reporting, including guidance on reporting COVID-19 related hardships.
Workout Program Options
The borrower may make either reduced payments or no monthly payments for a specified period of time. At the end of the forbearance period, the borrower must cure the delinquency through full reinstatement OR another workout option.
The borrower will be brought current by deferring delinquent payments, creating a non-interest bearing balance that will become due and payable at maturity of the mortgage loan (or earlier upon the sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing unpaid balance).
The borrower makes normal regular payments plus an additional agreed upon amount over a defined period of time to reinstate the mortgage.
A written agreement between the servicer and borrower that permanently changes one or more of the original terms of the Note, such as: capitalization of delinquent amounts; a change in the note rate; a change in the monthly payment; a change in the maturity date; a forbearance or write-off of a portion of the principal balance; or a change in the product type (ex: an ARM to a fixed rate mortgage).
The borrower sells the property for an amount that is less than the total amount owed on their mortgage to avoid foreclosure.
Deed-in-Lieu of Foreclosure
The borrower voluntarily transfers title to and possession of the property to the investor to satisfy the mortgage loan debt and avoid foreclosure.