FHFA Extends the foreclosure and eviction moratorium for a third time to December 31 Just before the eviction moratorium was almost expiring, the Federal Housing Finance Agency (FHFA) announced that it was extending the moratorium on foreclosures for single-family loans and evictions for real estate-owned (REO) properties until at least December 31. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only, while the REO eviction moratorium applies to properties acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions.
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reviously, the moratorium backed by the GSEs that is Fannie Mae and Freddie Mac was set to expire on August 31. The latest extension was the third time the agency extended the moratorium. The moratorium was intended to help homeowners and renters during these times of crisis. According to the director of FHFA, Mark Calabria, the extension will protect more than 28 million homeowners with mortgages backed by either of the GSEs. “To help keep borrowers in their homes during the pandemic, FHFA is extending the Enterprises’ foreclosure and eviction moratoriums through the end of 2020,” Calabria said. “This protects more than 28 million homeowners with an Enterprise-backed mortgage.” “With this latest extension of the foreclosure and eviction moratorium, we can continue to help ensure distressed borrowers are able to remain in
their homes during this national emergency,” said Malloy Evans, senior vice president, and singlefamily chief credit officer at Fannie Mae. According to Fannie Mae and Freddie Mac, the extension does not apply to tenants in homes that have not been foreclosed. The FHFA advises those who may be struggling with their mortgages or facing possible foreclosure to review their options as soon as possible. Moreover, homeowners impacted by the COVID-19 pandemic are eligible for a forbearance plan to suspend their mortgage payments for up to 12 months as provided in the CARES Act. Amid the foreclosure moratorium extension, FHFA projects that the GSEs will absorb additional expenses of between $1.1 and $1.7 billion due to the ongoing foreclosure moratorium and its extension. In the meantime, FHFA will continue to monitor the effects of the pandemic on the mortgage industry and amend its policies where needed.
Works cited. https://www.housingwire.com/articles/fhfa-extendsforeclosure-and-eviction-moratorium-for-a-third-time-todec-31/. https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFAExtends-Foreclosure-and-REO-Eviction-Moratoriums. aspx#:~
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The Power Is Now Magazine | OCTOBER 2020
