Biden Extends Federal Foreclosure Moratorium For Final Time. No More Extensions After August 1st.
The White House said the moratorium extension includes loans underwritten by the USDA, VA and HUD. Federal foreclosure moratoriums were put into place last year in response to the COVID-19 pandemic.
The Federal Housing Finance Agency which oversees Fannie Mae and Freddie Mac, will extend its foreclosure moratorium through the end of July.
Last week, the Biden administration ousted Trump-appointee FHFA Director Mark Calabria. This followed a Supreme Court ruling that eliminated restrictions on firing the FHFA director. Biden then appointed Sandra Thompson as Acting Director of FHFA.
The White House also said it would also extend the Centers for Disease Control limits on evictions. Originally, the CDC blocked evictions through June 30th. However, those limits were also extended through July 31, 2021.
Industry groups had previously urged Biden to allow the protections to sunset as planned.
Plans are also underway for how to prevent foreclosures when the foreclosure bans do eventually expire.
The FHFA will work with Fannie Mae and Freddie Mac to ensure that borrowers are evaluated for home retention solutions prior to any referral to foreclosure.
Until the end of September, HUD, USDA and VA borrowers who haven’t yet used any forbearance options can still enter into an agreement to put off payments. Those with Fannie Mae and Freddie Mac-backed mortgages can also still enter into new forbearance agreements.
The federal government is turning its focus to reducing payments for borrowers. HUD, VA and USDA will announce additional steps in July to offer borrowers payment reduction options that will enable them to stay in their homes.