FHFA Foreclosure Moratoriums Extended Until January 31st For All Fannie Mae And Freddie Mac Loans
The Federal Housing Finance Agency announced today that FHFA foreclosure moratoriums initiated in April are being extended until Jan. 31.
This marks the fourth time FHFA has extended the moratorium. It extends the latest extension deadline of December 31st.
FHFA director Mark Calabria said extending the foreclosure and eviction moratoriums keep borrowers safe during the pandemic:
The FHFA foreclosure moratorium only applies to Fannie Mae and Freddie Mac single-family mortgages. However, the extension also applies to real estate owned (REO) evictions. REO properties are properties acquired by Fannie or Freddie through foreclosure.
As a result, the FHFA projects the new extension will cost FHFA $1.1 to $1.7 billion. This is in addition to the $6 billion in costs already incurred by Fannie and Freddie.
FHFA said it will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed.
The FHFA recommends those who may be struggling with their mortgage or facing foreclosure to contact their servicers as soon as possible.
The CARES Act makes homeowners impacted by COVID-19 eligible for forbearance plans. The CARES Act also allows homeowners to suspend their mortgage payments for up to 12 months.
Foreclosure starts were down significantly in October. They declined to 4,700. This is a 90% year-over-year reduction according to recent data from Black Knight. In addition, active foreclosure inventory set yet another record low at 178,000.
Mortgage delinquencies overall fell to the lowest since March at 6.44%. However, there are still 3.4 million delinquent mortgages.
The FHFA has not yet stated if it will extend its policy allowing Fannie and Freddie to buy qualified loans in forbearance.
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