The Federal Housing Finance Agency on Thursday announced extensions on the bans on foreclosures and evictions, bringing Fannie Mae and Freddie Mac policies in line with others recently announced by the federal government.
Enacted in response to the Covid-19 pandemic, the moratoriums on single-family foreclosures and real estate owned evictions will be in place until June 30, 2021, FHFA announced. The foreclosure moratorium applies to Fannie and Freddie-backed, single-family mortgages. The REO eviction moratorium applies to properties that have been acquired by a Fannie or Freddie through foreclosure or deed-in-lieu of foreclosure transactions.
FHFA also announced that borrowers may be eligible for an additional three-month extension of Covid-19 forbearance, allowing borrowers to be in forbearance for up to 18 months.
“Borrowers and the housing finance market alike can benefit during the pandemic from the consistent treatment of mortgages regardless of who owns or backs them. From the start of the pandemic, FHFA has worked to keep families safe and in their home, while ensuring the mortgage market functions as efficiently as possible. Today’s extensions of the COVID-19 forbearance period to 18 months and foreclosure and eviction moratoriums through the end of June will help align mortgage policies across the federal government,” said Director Mark Calabria.
The current moratoriums were set to expire at the end of March.