At-risk homeowners can’t be removed until Dec. 31 – extended from Aug. 31 – if Fannie or Freddie owns the mortgage; a REO ban applies to completed foreclosures.
The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend moratoriums on single-family foreclosures and real estate owned (REO) evictions until at least Dec. 31, 2020.
The foreclosure moratorium applies to Fannie Mae or Freddie Mac-backed, single-family mortgages only, according to FHFA. The REO eviction moratorium applies to properties that Fannie Mae and Freddie Mac have acquired, either through foreclosure or deed-in-lieu of foreclosure transactions.
In both cases, the resident homeowners – or past homeowners in the case of completed foreclosures or deed-in-lieu transactions – cannot be evicted through the end of the year. Prior to Thursday’s announcement, the eviction moratoriums were to expire on Aug. 31, 2020 – this coming Monday.
FHFA Director Mark Calabria says the new eviction orders will “help keep borrowers in their homes during the pandemic. … This protects more than 28 million homeowners with an Enterprise-backed mortgage.”
FHFA projects that it will cost Fannie Mae and Freddie Mac an additional $1.1 to 1.7 billion due to the existing COVID-19 foreclosure moratorium and its extension. FHFA says it will continue to monitor the coronavirus’ impact on the mortgage industry and update policies as needed.
For more information on the government’s efforts to help homeowners struggling to pay their mortgage, visit the joint website of the Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection Bureau at cfpb.gov/housing.
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