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President Biden's Foreclosure Extension Met With Mixed Reactions

Navi Persaud
Feb 17, 2021
Aerial view of a suburban neighborhood.

Yesterday, President Joe Biden announced the extension of the mortgage relief program for homeowners who were financially affected by the COVID-19 pandemic. While homeowners are likely to be overjoyed with added relief during their time of need, Gryphon USA president, Richard Krause extended some criticism towards the President's decision.

"The unprecedented federal interference into the private housing market due to the COVID-19 pandemic certainly stabilized the shelter of Americans in a healthcare emergency which is positive," said Kruse, according to a press release. "However, extension of the foreclosure ban beyond the March 31 expiration fails to recognize the success of social distancing and vaccination programs against the initial emergency policy."

Krause believes that the March 31 extension wasn't met with much opposition as the Biden administration wanted to take another look at the overall situation. He also added that the administration "put forward an extreme policy not spending the effort to direct relief at those who truly need it."

Meanwhile, the Mortgage Bankers Association's president and CEO Bob Broeksmit issued a comment championing President Biden's mortgage relief extension.

"MBA welcomes today's announcement from HUD and the Biden Administration extending COVID-19-related homeowner relief, as well as foreclosure and eviction moratoriums, and believes it provides necessary assistance for homeowners and important guidance for mortgage servicers," said Broeksmit. "We will continue to work with the administration, Congress, and other stakeholders on aligning policies and initiatives that will help consumers during the pandemic."

Krause does note that he believes the June 30 date will solidify into a real expiration date and the market will begin to work out the damage in a post-COVID environment. 

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