The Federal Housing Finance Agency
(FHFA) has extended the Fannie Mae and Freddie Mac moratorium on foreclosures and evictions until at least June 30, 2020 for enterprise-backed, single-family mortgages only. The current moratorium was set to expire May 17. The measure was taken to give borrowers and renters who were at risk of losing their home due to the COVID-19 pandemic additional assistance.
"During this national health emergency, no one should be forced from their home," said FHFA Director Mark Calabria. "Extending the foreclosure and eviction moratoriums protects homeowners and renters with an Enterprise-backed mortgage and provides certainty for families."
The FHFA plans to revisit the moratorium when the next expiration date draws near. In the meantime, it recommends that borrowers and renters visit a new advice website
from the Department of Housing and Urban Development, FHFA, and Consumer Financial Protection Bureau to see what protections and assistance can be provided by the government.
“For those among the over 8.1 million single family homeowners with FHA-insured mortgages who need assistance, our highest priority is to ensure that they have the time through the foreclosure moratorium, and the assistance they need through special COVID-19 mortgage forbearance, to remain in their homes long-term,” said HUD Deputy Secretary Brian Montgomery
. “At the same time, extending our policy flexibilities will ensure that affordable FHA-insured mortgage financing continues to remain available to support first-time and other homebuyers, and the nation’s housing market.”
Yesterday, the GSEs made available a new payment-deferral option
that allows borrowers who are in forbearance due to COVID-19 to return to making their normal monthly mortgage payment, the ability to repay their missed payments at the time the home is sold, refinanced or at maturity.