FHFA extends moratoriums on foreclosures and evictions, maximum period of abstention and original flexibilities | Ballard Spahr srl
The Federal Housing Finance Agency (FHFA) announcement On February 9, 2021, the extension of the moratorium of Fannie Mae and Freddie Mac on single family foreclosures from February 28, 2021 to March 31, 2021. The moratorium on evictions of single family homes owned by Fannie Mae or Freddie Mac is also extended until the 31st. March 2021. The ad does not address evictions from multi-family properties on loan from Fannie Mae or Freddie Mac.
The FHFA also announced that eligible borrowers with Fannie Mae and Freddie Mac mortgages who reach the end of the maximum 12-month forbearance period under the CARES Act can benefit from an additional forbearance extension of up to ‘to three months, providing for up to 15 months of abstention Payments.
Fannie Mae discusses extending the foreclosure moratorium and extending the forbearance term in an update to Letter to the lender 2021-02, and Freddie Mac discusses extending the foreclosure moratorium and extending the forbearance period in Bulletin 2021-6. Regarding the moratorium on foreclosures, Fannie Mae and Freddie Mac indicate that the moratorium does not apply to properties deemed vacant or abandoned. Regarding the extension of the forbearance period, Fannie Mae and Freddie Mac advise the duty officer to establish a qualified contact person to assess the borrower for an extension. Freddie Mac also addresses revisions to the COVID-19 payment deferral, and Fannie Mae does so in Letter to the lender 2021-07.
On February 10, 2021, the FHFA announcement the extension of loan granting flexibilities linked to COVID-19 from February 28, 2021 to March 31, 2021. The flexibilities relate to alternative assessments on the purchase and certain refinancing loans, alternative methods to verify employment before the closure and the expanded use of attorney’s powers to assist with loan closings. Fannie Mae discusses expansion in updates to Letter to the lender 2021-03 and Lender Letter 2021-04. Freddie Mac discusses extension in Bulletin 2021-7.