As previously reported, the Federal Housing Finance Agency announced 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 from the Treasury Department’s Homeowner Assistance Fund (HAF).

Fannie Mae and Freddie Mac have issued guidance documents implementing this requirement in Updated Lender Letter 2021-01 and Bulletin 2022-8, respectively.  According to the guidance documents, effective immediately, servicers must delay/suspend initiating any judicial or non-judicial foreclosure, moving for a foreclosure judgment or order of sale, or executing a foreclosure sale, for up to 60 days if:

• The servicer has been notified that the borrower has applied for assistance under HAF;
• The servicer has sufficient time to delay initiation of the foreclosure process or moving for a foreclosure judgment or order of sale;
• The servicer, in the case of a foreclosure sale, is notified at least 7 days before the sale; and
• Any foreclosure proceeding or execution of a foreclosure sale can be delayed without dismissal of the action.

The guidance documents further note that if a servicer determines that it did not have sufficient time to delay initiation of the foreclosure process or moving for a foreclosure judgment or order of sale, the servicer must document in the loan file why it was unable to do so.

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