2/10/2005
Q's and A's

To provide relief for troops in Iraq, borrowers are not required to provide documentation supporting a military mobilization forbearance of up to one year (plus an additional three months of administrative forbearance). After that initial 15-month period, the borrower would need to provide a copy of the mobilization orders to qualify for an extension of the forbearance. (Federal Register Vol. 68, No. 239 p. 69316 [December 12, 2003])

However, Dear Colleague Letter GEN-03-06, dated March 25, 2003, specifically states that in addition to the orders, the lender must also obtain a written forbearance agreement with the borrower.

The problem is that borrowers in Iraq are virtually inaccessible. To provide relief for those mobilized, it seems inconsistent that DCL would contain a requirement that is more stringent than the regulations.

Jon Utz from FSA’s Policy Liaison and Implementation responded as follows:
“…the December 2003 waiver notice [Federal Register Vol. 68, No 239, p.69316] is what would apply in this situation. That notice effectively superseded the March 2003 DCL in this area. Therefore, there is no requirement for a written forbearance agreement after the initial 15 months. All the lender needs is some sort of documentation to support the borrower’s military mobilization beyond the initial period.”
Source: FSA Ombudsman News - December 2004