Today, the Federal Housing Finance Agency (FHFA) and the Trump Administration took a bold step to prevent homeowners with loans insured by the Federal Housing Administration (FHA) or owned by Fannie Mae or Freddie Mac from being foreclosed upon or evicted during this national emergency.
- The FHFA has directed Fannie Mae and Freddie Mac to suspend foreclosures and evictions for at least 60 days.
- Borrowers affected by the coronavirus who are having difficulty paying their mortgage, should reach out to their mortgage servicers as soon as possible.
- The Enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance.
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HUD, Fannie, Freddie suspend foreclosures, evictions during outbreak
FHFA Director Mark Calabria said the suspension "allows homeowners with an enterprise-backed mortgage to stay in their homes during this national emergency."
By Katy O’Donnell | March 18, 2020
The Department of Housing and Urban Development will be suspending foreclosures and evictions for mortgages insured by the Federal Housing Administration until the end of April, President Donald Trump announced today. A HUD source familiar with the stop said the suspension would protect 8.1 million households.
The Federal Housing Finance Agency also ordered Fannie Mae and Freddie Mac to suspend foreclosures and evictions for any single-family mortgages they back for “at least 60 days,” the agency said today.
“This foreclosure and eviction suspension allows homeowners with an enterprise-backed mortgage to stay in their homes during this national emergency,” FHFA Director Mark Calabria said in an emailed statement.
“As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage should reach out to their mortgage servicers as soon as possible,” Calabria added. The enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance.”
FHFA earlier this month had announced that the government-sponsored enterprises would provide payment forbearance — allowing mortgage payments to be suspended for up to a year — to borrowers hit by the outbreak. Fannie and Freddie also reminded mortgage servicers that hardship forbearance is an option for borrowers unable to make payments.
Read the full article in POLITICO here.
Visit Financial Services Committee Republicans’ website for additional resources and updates on efforts to mitigate the economic impact of coronavirus on consumers.