By Katy Mclaughlin | Wall Street Journal
Jumbo-loan borrowers may feel like the forgotten stepchildren of the pandemic: They are not mentioned in the recently passed Coronavirus Aid, Relief, and Economic Security (Cares) Act, which guarantees 180 days of forbearance to borrowers in government-backed loans. They were also not addressed in an April 27 announcement by the Federal Housing Finance Agency that borrowers aren’t required to make lump-sum payments after a forbearance period.
Still, lenders are extending forbearance and some other Cares Act protections to their jumbo borrowers. But customer beware. Some lenders are saying the only repayment option is a lump-sum payment the moment forbearance ends. Other lenders are pushing off repayment negotiations to later, so borrowers don’t know the financial impact of forbearance until it’s too late.
