FHFA Extends Foreclosure and Eviction Moratoriums, Maximum Forbearance Term, and COVID-19 Payment Deferral Scope

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The Federal Housing Finance Agency (FHFA) announced February 25, 2021, the extension of the Fannie Mae and Freddie Mac moratorium on single family foreclosures from March 31, 2021, to June 30, 2021. The moratorium on evictions from single family homes owned by Fannie Mae or Freddie Mac also is extended until June 30, 2021. The announcement does not address evictions from multi-family properties subject to a Fannie Mae or Freddie Mac loan. The extensions are consistent with the recent extensions of the foreclosure and eviction moratoriums until June 30, 2021, for Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA), and U.S. Department of Veterans Affairs single family home loan borrowers.

FHFA also announced an extension of the maximum COVID-19 forbearance period from 15 months to 18 months for borrowers in a COVID-19 forbearance plan as of February 28, 2021. Additionally, FHFA announced that the Fannie Mae and Freddie Mac COVID-19 Payment Deferrals can now cover up to 18 months of missed payments.

Fannie Mae addresses the changes in updates to Lender Letter 2021-02 and Lender Letter 2021-07, and Freddie Mac addresses the changes in Bulletin 2021-8. Fannie Mae and Freddie Mac advise that the foreclosure moratorium does not apply to properties determined to be vacant or abandoned. 

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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