FHFA, FHA extend eviction and foreclosure moratorium to June 30
WASHINGTON — The Federal Housing Finance Agency is extending by over a month its moratorium for foreclosures and evictions on single-family loans backed by Fannie Mae or Freddie Mac until at least June 30.
Soon after the FHFA's announcement, the Federal Housing Administration announced the same extension for its freeze on foreclosures and evictions, meant to help borrowers affected by the coronavirus pandemic. The previous deadline for both agencies was May 17.
“During this national health emergency, no one should be forced from their home," FHFA Director Mark Calabria said in a statement. “Extending the foreclosure and eviction moratoriums protects homeowners and renters with an Enterprise-backed mortgage and provides certainty for families.”
The Coronavirus Aid, Relief and Economic Security Act, which Congress passed in March, allowed for a 60-day moratorium on foreclosures and evictions on federally backed mortgages.
FHA additionally extended some of its policies developed earlier in the coronavirus outbreak, including allowing appraisers to conduct remote appraisals and providing alternatives for lenders to verify a borrower’s employment status.
“For those among the over 8.1 million single family homeowners with FHA-insured mortgages who need assistance, our highest priority is to ensure that they have the time through the foreclosure moratorium, and the assistance they need through special COVID-19 mortgage forbearance, to remain in their homes long-term,” said FHA Commissioner Brian Montgomery.
The FHFA's announcement came one day after the agency said it would provide borrowers struggling to stay current with an additional payment deferral option. Starting July 1, homeowners will have the option to make up to a year of payments missed under forbearance at the end of their loan term.
The agency said it would “continue to monitor the coronavirus situation and update policies as needed.”