Fannie, Freddie Extend Foreclosure Ban

Another month of security.

The Federal Housing Finance Agency announced Wednesday that Fannie Mae and Freddie Mac will extend the moratoriums on single-family foreclosures and real estate owned evictions until at least January 31.

Originally enacted earlier this year to protect homeowners during the Covid pandemic, the moratorium applies to Fannie and Freddie-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by Fannie and Freddie through foreclosure or deed-in-lieu of foreclosure transactions.

“Extending Fannie Mae and Freddie Mac’s foreclosure and eviction moratoriums through January 2021 keeps borrowers safe during the pandemic,” Director Mark Calabria said. “This extension gives peace of mind to the more than 28 million homeowners with an Enterprise-backed mortgage.”

FHFA projects additional expenses of $1.1 billion to $1.7 billion will be borne by Fannie and Freddie due to the existing COVID-19 foreclosure moratorium and its extensions. This is in addition to the $6 billion in costs already incurred, FHFA said.