FHFA, HUD, and VA Announce Extension of Foreclosure Moratoriums Through December 31

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On August 27, 2020, the Federal Housing Finance Agency (FHFA) announced the extension of the Fannie Mae and Freddie Mac moratorium on single-family foreclosures from August 31, 2020, to December 31, 2020. The moratorium on evictions from single-family homes owned by Fannie Mae or Freddie Mac also is extended until December 31, 2020. The announcement does not address evictions from multi-family properties subject to a Fannie Mae or Freddie Mac loan. Fannie Mae addresses the extension of the single-family foreclosure moratorium in an update to Lender Letter 2020-02 and advises that the moratorium does not apply to vacant or abandoned homes.

Also on August 27, 2020, the U.S. Department of Housing and Urban Development (HUD) in Mortgagee Letter 2020-27 extended the foreclosure and eviction moratorium for FHA insured single-family loans from August 31, 2020, to December 31, 2020. The FHA moratorium applies to all FHA Title II single-family forward and Home Equity Conversion (reverse) mortgage loans, except for FHA loans secured by vacant or abandoned properties. Deadlines for the first legal action and reasonable diligence timelines are extended by 90 days from the date of expiration of the moratorium.

In Circular 26-20-29 and Circular 26-20-30, each dated August 24, 2020, the U.S. Department of Veterans Affairs (VA) extended the eviction and foreclosure moratoriums, respectively, for properties secured by VA guaranteed loans from August 31, 2020, to December 31, 2020.

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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