“The health and safety of the American people is of the utmost importance to the Department, and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.” “Today’s actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns,” HUD Secretary Ben Carson said. The FHA foreclosure moratorium applies to homeowners that have an FHA-insured Title II Single Family forward and Home Equity Conversion mortgage.
“The Enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance.” “As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage should reach out to their mortgage servicers as soon as possible,” Calabria added. Given that Fannie and Freddie are the largest mortgage financers in the country, the move is a sizable one. “This foreclosure and eviction suspension allows homeowners with an Enterprise-backed mortgage to stay in their homes during this national emergency,” FHFA Director Mark Calabria said in a statement. That would mean the moratorium lasts through mid-May, at least.Īccording to the FHFA, the foreclosure and eviction suspension applies to homeowners whose single-family mortgage is backed by either Fannie Mae or Freddie Mac.
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The FHFA announced Wednesday that it is directing Fannie Mae and Freddie Mac to suspend foreclosures and evictions for “at least 60 days.” That matches the policy announced Wednesday by the Federal Housing Finance Agency. HUD later announced its official policy, stating that the Federal Housing Administration is enacting an “immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages” for the next 60 days. President Donald Trump announced Wednesday that the Department of Housing and Urban Development is suspending all foreclosures and evictions until the end of April. By backing these loans, they help control mortgage rates, which are currently at historic lows.Cities and states across the country are already suspending evictions and foreclosures in response to the spread of the coronavirus, but the federal government is taking the biggest step so far to keep people in their homes. Some industry observers believe the move was geared to shore up capital as Fannie and Freddie prepare to go private once again.įannie and Freddie do not originate mortgages, but instead buy mortgages that they then securitize to sell to investors. Industry groups said the fee would add an average of $1,400 to homeowners seeking to refinance their mortgages. On Wednesday, the agency said it would delay the uptick in fees from September until December. The agency overseeing Fannie and Freddie, the Federal Housing Finance Agency (FHFA), is also facing scrutiny from the mortgage and housing industries over their plans to raise fees on lenders for refinancing mortgages by 0.5 percent. In August, New York’s courts announced that as many as 14,000 evictions filed before the pandemic could proceed. And courts are preparing for more eviction lawsuits.
The moratorium delay means a projected wave of foreclosures will not happen until after the November presidential election.Ī recent report from the Mortgage Bankers Association found that about 16 percent of Federal Housing Administration mortgages were in delinquency at the end of the second quarter. In August, President Trump put out an order for agencies to “consider” another eviction ban for properties backed by Fannie Mae and Freddie Mac. And conversations between Congressional Democrats and Republicans over another stimulus package have stalled. Unemployment benefits, which provided individuals with up to $600 a week, expired on July 31. The move comes amid concerns from landlords over tenants’ ability to pay rent, as government aid runs out.
The foreclosure moratorium only applies to properties with single-family mortgages backed by Fannie Mae and Freddie Mac, while the eviction moratorium applies only to homes owned by Fannie Mae and Freddie Mac. The moratorium was set to expire at the end of August. 31, providing relief to millions of homeowners and mortgage holders. FHFA director Mark Calabria (Getty iStock)įannie Mae and Freddie Mac are extending their moratorium on foreclosures and evictions until Dec.
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