When the Federal Housing Finance Agency announced last month that servicers who collect payments on mortgages backed by Fannie Mae and Freddie Mac will only be required to cover four months of missed payments on loans in forbearance, the big question was what happens when that four-month period is over.

That’s because neither the GSEs nor the FHFA said who would pay the remaining principal and interest payments that those servicers are required to send to investors, but it’s not a mystery anymore.

As it turns out, the GSEs themselves are preparing to cover any remaining advances for as long as those loans remain in forbearance.

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