However, Democratic congressional members argue that these protections do not go far enough to protect homeowners and renters in light of the pandemic.
To help borrowers at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency is extending the moratorium on single-family foreclosures and real estate owned evictions for Fannie Mae and Freddie Mac (the Enterprises) until at least Dec. 31, 2020. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. Additionally, the Federal Housing Administration is extending its foreclosure and eviction moratorium through Dec. 31, 2020, for homeowners with FHA-insured single-family mortgages covered under the Coronavirus Relief and Economic Security (CARES) Act. Both moratoriums were set to expire on Aug. 31, 2020.
"To help keep borrowers in their homes during the pandemic, FHFA is extending the Enterprises' foreclosure and eviction moratoriums through the end of 2020," said FHFA Director Mark Calabria. "This protects more than 28 million homeowners with an Enterprise-backed mortgage." Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade stated in the FHA’s press release that "Right now, it’s important that those affected by COVID-19 focus on the immediate priorities of regaining their financial footing, without the additional stress of dealing with a foreclosure action."
Congressional response. In response to the announcement, Sen. Sherrod Brown (D-Ohio), Ranking Member of the Senate Banking Committee, remained critical of the announcement, saying that millions of homeowners could still face foreclosure and more than 15 million renters could face eviction without legislative action to provide the protections and assistance they need. "This foreclosure moratorium does not go far enough—it provides fewer protections to homeowners than the House-passed Heroes Act and does nothing to protect millions of renters whose health and financial wellbeing are at risk."
Additionally, Rep. Maxine Waters (D-Calif), Chair of the House Financial Services Committee, said "Once again, the Trump administration has failed to provide the necessary help to renters in the middle of this pandemic crisis. To distract from their complete and utter refusal to take more meaningful action to address the growing rental housing crisis, Trump issued an empty executive order on housing that did nothing for struggling renters and now, Secretary Carson has announced a foreclosure and eviction moratorium for FHA single family loans that leaves renters in those properties out to dry."
Companies: Fannie Mae; Freddie Mac
MainStory: TopStory CommunityDevelopment Covid19 FinancialStability GovernmentSponsoredEnterprises Loans Mortgages
Interested in submitting an article?
Submit your information to us today!Learn More
Banking and Finance Law Daily: Breaking legal news at your fingertips
Sign up today for your free trial to this daily reporting service created by attorneys, for attorneys. Stay up to date on banking and finance legal matters with same-day coverage of breaking news, court decisions, legislation, and regulatory activity with easy access through email or mobile app.