Foreclosure moratorium applies to Enterprise-backed mortgages; eviction moratorium applies to Enterprise-owned properties
To help borrowers at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) has extended its moratorium on foreclosures and evictions to Jan. 31, 2021. The policy applies to government-sponsored enterprise (GSE)-backed single-family mortgages and GSE-owned properties.
“Extending Fannie Mae and Freddie Mac’s foreclosure and eviction moratoriums through January 2021 keeps borrowers safe during the pandemic,” said Director Mark Calabria. “This extension gives peace of mind to the more than 28 million homeowners with an Enterprise-backed mortgage.”
The FHFA and Department of Housing and Urban Development (HUD) previously extended their foreclosure moratoriums through the end of the year following President Donald Trump’s executive order stating that federal agencies will work to minimize evictions and foreclosures amid the pandemic.
As federal housing agencies have worked to support borrowers amid the coronavirus pandemic, the FHFA heeded the call to provide mortgage servicers with some relief and provided a four-month limit on advances of principal and interest payments for loans in forbearance sold to the GSEs. It has also allowed the GSEs to purchase certain-single family mortgage loans in forbearance and recently extended that policy through the end of the year.
Currently, FHFA projects additional expenses of $1.1 to $1.7 billion will be borne by the Enterprises due to the existing COVID-19 foreclosure moratorium and its extension. This is in addition to the $6 billion in costs already incurred by the Enterprises. FHFA will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed. To understand the protections and assistance offered by the government to those having trouble paying their mortgage, please visit the joint Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection Bureau website at cfpb.gov/housing.
Source: FHFA
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