WASHINGTON, D.C. – The Federal Housing Finance Agency (FHFA) has extended the moratorium on foreclosures and evictions and has announced a new payment deferral option.
Both measures are intend- ed to help borrowers and renters who are at risk of losing their home because of the coronavirus pandemic, officials said.
Fannie Mae and Freddie Mac (“the Enterprises”) are extending their moratorium until at least June 30; it was set to expire May 17.
“During this national health emergency, no one should be forced from their home,” said Director
Mark Calabria. “Extending the foreclosure and eviction moratoriums protects homeowners and renters with an Enterprise-backed mortgage and provides certainty for families.”
Additionally, to help homeowners who are in COVID-19-related forbearance, the FHFA announced that Fannie Mae and Freddie Mac have introduced a payment deferral option that allows borrowers who are able 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.
“This new forbearance repayment solution responsibly simplifies options for homeowners while providing an additional tool for mortgage servicers,” Calabria said. “Borrowers who can pay their mortgage should, because missed payments remain an obligation that ultimately will have to be repaid.”
Servicers will begin offering the payment deferral repayment option starting July 1.
In addition to the new payment deferral option, borrowers with COVID-19-related hardships can still utilize other options that include reinstatement, repayment plan, or loan modifications based on their individual situations, Calabria noted.
The FHFA regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan banks.