Corona pandemic and MRF/payment shock

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  • #66240
    frankysmom
    Member

    Hello

    Thankfully, my job is still paying me for days missed due to closing because of the pandemic. Which leads to the following question, if payment shock or MRF takes a dip during shut downs, will NACA take the crisis into consideration or would the member have to re-qualify?

    #66241
    TTrumble
    Member

    Hello frankysmom,

    Failure to meet Payment Shock will likely NOT be excused since it means you failed to make your desired mortgage payment amount for the month. Were you already in a home with that payment amount, you would then be in default on the mortgage, which is not acceptable.

    Beyond that, the answer to that question regarding Minimum Required Funds is going to largely boil down to a burden of proof scenario. Can you prove that dipping into the MRF was a necessity to keep a roof over your head and food on the table? What expenses did you cut back on to try and live on your temporarily reduced income?

    In short, the rules of the program aren’t going to change, but did you do the best you possibly could with the responsibilities within your control while your income was reduced? The answer to that question and the evidence to support it will no doubt be what determines how much leeway we will be able to give.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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