FHFA, FHA Extend Eviction, Foreclosure Ban

The Federal Housing Finance Agency and Federal Housing Administration announced Wednesday that they are extending the moratorium on foreclosures and evictions as the nation continues to cope with economic fallout from the COVID-19 pandemic. The ban on evictions and foreclosures will be in place until at least Aug. 31. It was set to expire on June 30. “To protect borrowers and renters during the pandemic we are extending the Enterprises’ foreclosure and eviction moratorium. During this national health emergency no one should worry about losing their home,” FHFA Director Mark Calabria said. “While the economic recovery is already underway, many American families still need more time and assistance to regain their financial footing,” HUD Secretary Ben Carson said. “Our foreclosure and…

FHFA Extends Eviction, Foreclosure Ban

Renters and borrowers who face being kicked out of their homes received at least a six-week reprieve on Thursday. The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac are extending their moratorium on foreclosures and evictions until at least June 30 as homeowners and renters struggle with the coronavirus pandemic. The foreclosure moratorium was set to expire on Sunday. It only applies to single-family mortgages backed by Fannie and Freddie. “During this national health emergency, no one should be forced from their home,” FHFA Director Mark Calabria said. “Extending the foreclosure and eviction moratoriums protects homeowners and renters with an Enterprise-backed mortgage and provides certainty for families.” FHFA said it will “continue to monitor the coronavirus situation…

CEO Outlines Nightmare Scenario For Borrowers, Lenders

MBS Highway President and CEO Barry Habib presented a bleak scenario resulting from the Federal Housing Finance Agency’s announcement Tuesday that mortgage lenders will have to cover four months of missed payments from borrowers under forbearance during the coronavirus pandemic. In a Facebook Live with the Association of Independent Mortgage Experts, Habib warned that lenders may be incentivized to hold on to new loans and potentially ruin borrowers’ credit, unless more federal protection is enacted. He presented a scenario in which a servicer issues a loan and makes 50 basis points on the deal. “If a loan went bad on a first-payment default because they needed forbearance or they’re gaming the system … so on a $300,000 loan, you risk losing $21,000 to…