For the fifth time, the Federal Housing Finance Agency is extending single-family foreclosures and real estate–owned eviction moratoriums on properties backed by Fannie Mae and Freddie Mac, the agency announced Tuesday. The extension runs until Feb. 28. The moratoriums are in place due to the financial impact brought on by the COVID-19 pandemic.
The program was originally scheduled to expire in June 2020. The most recent deadline for the program was Jan. 31.
The foreclosure moratorium applies only to single-family mortgages backed by Fannie Mae and Freddie Mac. The real estate-owned eviction ban applies to properties that have been acquired by Fannie or Freddie through a foreclosure or deed in lieu of foreclosure transaction.
“To keep our communities safe, and families in their homes during the COVID-19 pandemic, FHFA is extending Fannie Mae and Freddie Mac's foreclosure and eviction moratorium," FHFA Director Mark Calabria said in a statement.
Fannie Mae and Freddie Mac also offer loss mitigation programs to borrowers who may be experiencing hardship in making their payments. Qualified borrowers could be eligible for loan modifications or temporary forbearance for up to 12 months, whether the hardship was caused by COVID-19 or not. The FHFA says that program will remain available even when the COVID-19 forbearance flexibilities end.
Last week, the FHFA also announced it would continue to allow for alternative appraisals and employment verifications on government-backed loans until Feb. 28 to help prevent settlement delays.
Read more: FHFA Extends Relaxed Pandemic Lending Standards
Source: FHFA.gov
