The Federal Housing Finance Agency (FHFA) has announced Fannie Mae and Freddie Mac (the Enterprises) will extend foreclosure and real estate owned (REO) eviction moratoriums to at least Jan. 31, 2021.
“Extending Fannie Mae and Freddie Mac's foreclosure and eviction moratoriums through January 2021 keeps borrowers safe during the pandemic,” Director Mark Calabria said in a release. “This extension gives peace of mind to the more than 28 million homeowners with an Enterprise-backed mortgage.”
The FHFA said the foreclosure moratorium only applies to Enterprise-backed, single-family mortgages, and the REO eviction moratorium applies to properties acquired by an Enterprise through foreclosure or deeds-in-lieu of foreclosure.
“Currently, FHFA projects additional expenses of $1.1 to $1.7 billion will be borne by the Enterprises due to the existing COVID-19 foreclosure moratorium and its extension,” the agency stated. “This is in addition to the $6 billion in costs already incurred by the Enterprises. FHFA will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed.”