The Federal Housing Finance Agency (FHFA) says Fannie Mae and Freddie Mac have been directed to extend their moratoria on single-family foreclosures and real estate owned (REO) evictions until at least Jan. 31, 2021, in the face of the continuing coronavirus national emergency.
The moratoria were set to expire on December 31.
The foreclosure moratorium applies to GSE-backed single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by Fannie or 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,” says FHFA Director Mark Calabria. “This extension gives peace of mind to the more than 28 million homeowners with an Enterprise-backed mortgage.”
Currently, FHFA projects additional expenses of $1.1 billion to $1.7 billion will be borne by the GSEs due to the existing COVID-19 foreclosure moratorium and its extension. This is in addition to the $6 billion in costs already incurred. FHFA says it will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed.
