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- In cases where a significant segment of the membership client are impacted simultaneously (i.e. strike, layoffs or shutdown of a SEG) and delinquency/ modification requests are expected to increase, the board may temporarily implement, through board action, the following authorities in order to provide the flexibility necessary to help mitigate the negative impact to the organization:
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INTEREST RATE REDUCTION OR FORBEARANCE
- Any member client who requests an interest rate reduction or Principal Forbearancemust meet with and be approved by the Loan Review Committee (CEO, Director of Lending and One Member client of the Board of Directors.)
- In the context of a mortgage process, forbearance is a special agreement between the lender and the borrower to delay a foreclosure. The literal meaning of forbearance is “holding back.” Loan borrowers sometimes have problems making payments. This may cause the lender to start the foreclosure process. To avoid foreclosure, the lender and the borrower can make an agreement called "forbearance". According to this agreement, the lender delays his right to exercise foreclosure if the borrower can catch up to his payment schedule in a certain time. This period and the payment plan depend on the details of the agreement that are accepted by both parties.
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