December 2nd, 2020
FHFA Extends Foreclosure and REO Eviction Moratoriums
The Federal Housing Finance Agency (FHFA) has extended the moratoriums on single-family foreclosures and real estate owned (REO) evictions until at least January 31, 2021. The foreclosure moratorium applies to mortgages backed by Fannie Mae and Freddie Mac only.
This is the fourth time the agency has extended moratoriums, this time 30 days beyond its most recent deadline of December 31.
"Extending Fannie Mae and Freddie Mac's foreclosure and eviction moratoriums through January 2021 keeps borrowers safe during the pandemic," said Director Mark Calabria in a recent release. "This extension gives peace of mind to the more than 28 million homeowners with an Enterprise-backed mortgage."
The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions.
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. This is in addition to the $6 billion in costs already incurred by the Enterprises.
As previously stated by FHFA, the agency will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed.