Helpful Mortgage FAQs
What help is available if I cannot make my mortgage payment?
If you have a federally backed mortgage the new CARES law helps you by providing payment forbearance, protecting credit reporting during this period, and placing a moratorium on foreclosures. Forbearance provides immediate payment relief while you work out a solution.
If you do not have a federally backed mortgage, and CPM is servicing your mortgage, then your mortgage is owned by CPM and we have even more flexibility to help you. We provide a payment suspension plan, and it includes a full solution which spells out an affordable repayment plan.
Mortgages in South Carolina, whether federally backed or not, are also protected by an order from the Chief Justice of South Carolina suspending almost all foreclosures and evictions.
How do I know if I have a federally backed mortgage or if my mortgage is owned by CPM?
We can help you with that. Simply call our Contact Center during their normal hours of operation at 800.255.1513.
All new mortgages we originated since September 2013 are serviced by TruHome Solutions on our behalf. They service both federally backed and CPM owned mortgages, so you cannot tell the difference based on whether you get a statement from TruHome Solutions.
Who is TruHome Solutions?
Most of our mortgage servicing is handled by TruHome Solutions, we are responsible for them, and we are working closely with them to ensure that you get the support you need during these difficult times. If you got your loan with us since September 2013 you are already dealing with them. They service both portfolio loans and federally backed loans for us. They work with many credit unions, they only provide servicing for credit union members, and they are committed to the same values as CPM. They are experts in mortgage servicing, and they are working very hard to support credit union members during this pandemic. We are communicating with them daily, and they have been very responsive to us.
I got my loan from CPM. Does it matter if it was federally backed?
Yes. We are here to help, but our flexibility depends greatly on who holds your mortgage.
For about two thirds of the mortgage loans we service we own the mortgage, there are no investors, and we have lots of flexibility to work with you. We call these loans “portfolio loans”. These are the loans we hold in our loan portfolio and carry on our balance sheet. No investors are involved and we are not bound by the servicing rules and guidelines which govern federally backed mortgages. You and we can agree to a plan, and the decision can be made locally, quickly, and with certainty. We put together a Payment Suspension Plan for borrowers with portfolio loans, and that plan provides for exactly what will happen at the end of the suspension period.
About one third of the loans we service are federally backed mortgages. Those are governed by the rule book based on who purchased and securitized your loan, and the purchaser may be an entity such as Fannie Mae, Freddie Mac, Ginnie Mae, FHA, or VA.
Every servicer which services federally backed mortgages is bound by the same servicing rules and guidelines. For example, every borrower with an FHA loan will have their outcome determined by the same set of rules and guidelines, whether their servicer is a bank, credit union, or other servicer. The servicing rules and guidelines are complex, can result in different outcomes for different borrowers, and the servicers do not have the flexibility to diverge from them.
So, if I have a federally backed mortgage you can’t help me?
The rules and guidelines are already a help. They provide for immediate payment forbearance, and that buys you time to figure out a solution. As you seek that solution, we can help you navigate through to the proper outcome under the servicing rules and guidelines which govern your mortgage. As we cannot change those rules our goal will be to be responsive to you and get you the best outcome you qualify for. We need to listen well and document your circumstances accurately. If at any time you feel we are not doing our job properly as a servicer please escalate your concern to CPM leadership.
How does forbearance work and how much can I get?
Forbearance lets you defer making scheduled payments but does not forgive any debt. The new CARES law governs all federally backed mortgages and provides for up to 6 months of payment forbearance, followed by up to an additional 6 months. CARES states that the lender may not charge a fee or additional interest beyond what is scheduled for a forbearance. Servicers are broadly adopting a 3 month term for the initial forbearance period. If you need a forbearance you must request it. Lenders are not automatically granting forbearances.
If I have a federally backed mortgage what happens at the end of my forbearance period?
It depends. We know that is not the answer you want to hear, but that is the answer. Your loan is part of a pool owned by investors and there are lots of rules governing what a servicer must do to protect the investors’ interests. The rules are designed to find ways to keep people in homes who have experienced and overcome a temporary hardship, and that outcome is in the interest of both the homeowners and the investors. However, the results at the end of the forbearance period may be very different for different borrowers. The servicer is obligated to evaluate your circumstances, such as have you overcome a temporary hardship and do you now have the ability to repay the mortgage, and then act accordingly.
If I get a forbearance will I have to make all my skipped payments at the end of my forbearance period? That is no help at all!
Most borrowers will probably not fall in this category, but it depends. Borrowers can get a forbearance without having to provide any documentation of a hardship. At the end of the forbearance period if it is determined that a borrower never had a hardship, or has the assets or income to immediately catch up on the forbearance payments, the investor has a right to be paid. Most borrowers won’t have the ability to catch up all at once, but even for those borrowers their outcome depends upon their circumstances. A borrower who has overcome a temporary hardship and has the ability to afford the home, with some help, can expect to have good options to stay in the home. Options may include offering you a repayment plan where you pay a bit extra for a period and do not extend the maturity date of your loan, or a modification where you agree to a new payment amount and loan term. A longer loan term makes your payment more affordable but increases the amount you pay over the life of your loan. A borrower who does not have the ability to afford to stay in their home will not have the same options. And other circumstances, such as the property no longer being the borrower’s residence, matter to the outcome.
If CPM owns my mortgage how does the Payment Suspension Plan work?
There are no fees for this plan and we protect your credit reporting during the suspension period. If you meet the terms of repayment we do not charge interest on interest and we will report to the credit bureaus that you are paying as agreed.
It sounds like the first thing I should do is determine if I have a federally backed mortgage or if CPM owns my mortgage?
Yes, and if you do not know please call our Contact Center at 800.255.1513.
Federally backed mortgage = Forbearance = Payment relief which buys you time to get the best solution you qualify for under federal rules and guidelines for loan servicers. You do not have certainty of what happens after the forbearance period as individual circumstances matter.
CPM owned mortgage = Payment Suspension Plan = Payment relief and an agreed upon affordable repayment plan. You have certainty of what happens after the suspension period.
How can I apply for mortgage relief?
Simple. Visit cpmfed.com/mortgage_relief and follow the links based on your loan origination date.