Feds extend foreclosure, eviction stays

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  • Feds extend foreclosure moratorium
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WASHINGTON, D.C. – The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (“the Enterprises”) will extend moratoriums on single-family foreclosures and real estate-owned (REO) evictions until at least Dec. 31.

The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions.

The moratoriums were set to expire on Aug. 31.

“To help keep borrowers in their homes during the coronavirus pandemic, FHFA is extending the Enterprises’ foreclosure and eviction moratoriums through the end of 2020,” said Director Mark Calabria. “This protects more than 28 million homeowners with an Enterprise-backed mortgage.”

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. FHFA will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed.

FHFA regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.6 trillion in funding for the U.S. mortgage markets and financial institutions.