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The Federal Housing Finance Agency announced Fannie Mae and Freddie Mac's extension of moratoriums on single-family foreclosures and real estate owned evictions until March 31, 2021. The foreclosure moratorium applies to enterprise-backed, single-family mortgages only, according to a press release. Additionally, the REO eviction moratorium applies to properties that have been acquired by the enterprises through foreclosure or deed-in-lieu of foreclosure transactions.
The FHFA added that borrowers with a mortgage backed by Fannie or Freddie may be eligible for an additional forbearance extension of up to three months. Eligibility is limited to borrowers who are on a COVID-19 forbearance plan as of Feb. 28, 2021, and other limits may apply. COVID-19 Payment Deferral for borrowers with an enterprise-backed mortgage can now cover up to 15 months of missed payments. COVID-19 Payment Deferral allows those borrowers to repay their missed payments at the time the home is sold, refinanced or at mortgage maturity.
“To keep families in their home during the pandemic, FHFA is allowing borrowers to be in COVID-19 forbearance for up to 15 months and extending the enterprises' foreclosure and eviction extension," said director Mark Calabria.
The FHFA projects expenses of $1.5 to $2 billion will be borne by the enterprises due to the existing COVID-19 foreclosure moratorium and its extension.
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