The Federal Housing Financing Agency (FHFA) has extended its moratoria on single-family foreclosures and real estate-owned (REO) evictions on Fannie Mae and Freddie Mac mortgages until at least December 31.
The moratoria were originally established by the FHFA in March and initially had terms of 60 days. With the COVID-19 pandemic persisting and its impacts causing economic hardships for several across the country, this extension marks the third time the FHFA has extended the eviction and foreclosure protections for borrowers with government-sponsored enterprise (GSE) loans; previously, the moratoria were set to expire at the end of August.
As has been the case, the foreclosure moratorium applies to GSE-backed single-family mortgages only, while the REO eviction moratorium applies to properties that have been acquired by Fannie or Freddie via foreclosure or deed-in-lieu of foreclosure transactions.
“To help keep borrowers in their homes during the pandemic, FHFA is extending the Enterprises’ foreclosure and eviction moratoriums through the end of 2020,” said Mark Calabria, director of the FHFA. “This protects more than 28 million homeowners with an Enterprise-backed mortgage.”
Officials from both Fannie Mae and Freddie Mac likewise reiterated their pledge to help people affected by the economic issues wrought by the novel coronavirus.
“Fannie Mae, along with our lending and servicing partners, remains committed to supporting households who are experiencing job loss, a reduction in work hours or income, or other issues due to COVID-19,” said Malloy Evans, senior vice president and single-family chief credit officer for Fannie Mae. “With this latest extension of the foreclosure and eviction moratorium, we can continue to help ensure distressed borrowers are able to remain in their homes during this national emergency.”
“The extension of our eviction and foreclosure moratorium is just one part of the comprehensive assistance we’re providing borrowers and communities impacted by COVID-19,” said Donna Corley, executive vice president and head of Freddie Mac’s single-family business. “We are committed to helping families affected by the pandemic, and we have instructed servicers to work with borrowers who are unable to make their mortgage payments to ensure they are evaluated for a forbearance plan or other appropriate assistance.”