The Federal
Housing Finance Agency announced that Fannie Mae and Freddie Mac will extend the moratoriums on single-family foreclosures and real
estate owned evictions until at least December 31, 2020 to help borrowers at risk of losing their home due to the coronavirus national emergency. The
foreclosure moratorium applies to Enterprise-backed, single-family mortgages
only. The REO eviction moratorium applies to properties that have been acquired
by an Enterprise through foreclosure or deed-in-lieu of foreclosure
transactions. The current moratoriums were set to expire on August 31, 2020.
“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 Director Mark Calabria.
“This protects more than 28 million homeowners with an Enterprise-backed
mortgage.”
Currently, FHFA projects
additional expenses of $1.1 to 1.7 billion will be borne by the Enterprises due
to the existing COVID-19 foreclosure moratorium and its extension. FHFA will
continue to monitor the effect of coronavirus on the mortgage industry and
update its policies as needed.