The Federal Housing Finance Agency (FHFA) has published a notice that Fannie Mae and Freddie Mac will require servicers to suspend foreclosure activities for up to 60 days if the servicer has been notified that a borrower has applied for assistance under the Department of the Treasury’s Homeowner Assistance Fund (HAF).
“FHFA is committed to sustainable homeownership,” comments FHFA Acting Director Sandra L. Thompson. “This action will provide borrowers who need temporary mortgage assistance with additional time to be evaluated for relief through their state’s approved Homeownership Assistance Fund.”
This action is the latest step FHFA has taken to benefit homeowners and the mortgage market during the pandemic. FHFA continues to monitor the effect of the COVID-19 servicing policies on borrowers, the GSEs and their counterparties, and the mortgage market.
The HAF’s purpose is to prevent mortgage delinquencies and defaults, foreclosures, loss of utilities or home energy services, and displacement of homeowners experiencing financial hardship after January 21, 2020. Under the American Rescue Plan Act of 2021, HAF provides up to $9.96 billion for states, territories, and tribal entities to provide financial relief for homeowners. HAF is administered by the Department of the Treasury.
