FHFA Extends Foreclosure and Eviction Moratoriums
Homeowners with mortgages backed by Fannie Mae and Freddie Mac are getting another month of protection from foreclosures and evictions as the pandemic rages on, according to the Federal Housing Finance Agency (FHFA).
The FHFA said Tuesday that it is extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions to Feb. 28 from Jan. 31, the original deadline announced back in December. The REO eviction moratorium applies to properties Freddie Mac or Fannie Mae acquired through foreclosure and deed-in-lieu of foreclosure.
The extension comes at a time when homeowners may need more reprieve as COVID-19 cases and deaths climb higher and the unemployment crisis continues.
“To keep our communities safe and families in their homes during the COVID-19 pandemic, FHFA is extending Fannie Mae and Freddie Mac's foreclosure and eviction moratorium," FHFA Director Mark Calabria said in the press release.
The FHFA expects Freddie Mac and Fannie Mae to incur another $1.4 billion to $2 billion in expenses due to the existing COVID-19 foreclosure moratorium and its extension. When the last extension through Jan. 31 was announced, the FHFA said it expected an additional $1.1 billion to $1.7 billion in expenses on top of the $6 billion that Fannie Mae and Freddie Mac had already incurred from the program.
The FHFA is not to be confused with the FHA—Federal Housing Administration—which extended the deadline on its foreclosure and eviction moratorium for homeowners with FHA-insured mortgages to Feb. 28 back in December.