To help borrowers at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until at least Jan. 31, 2021. The foreclosure moratorium applies to enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by Freddie Mac and Fannie Mae through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on Dec. 31, 2020.
“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.”
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.