FHFA and HUD Announce Extension of Foreclosure Moratorium Again, Other Agencies Expected to Follow
Today, (June 17, 2020) the FHFA announced that Fannie Mae and Freddie Mac will extend their single-family moratorium on foreclosures and foreclosure related evictions until at least August 31, 2020. The current moratorium was set to expire on June 30, 2020. The moratorium extension applies to Enterprise-backed single-family mortgages only. Enterprise-backed mortgages are mortgages owned by or securitized by Fannie Mae or Freddie Mac.
HUD also announced that it has extended its moratorium to August 31, 2020 on foreclosures and evictions for FHA Title II Single Family mortgage programs.
The VA and USDA also have their own foreclosure moratoriums currently in place through June 30, 2020. It is likely that these agencies will similarly follow the lead of FHFA and HUD and extend their moratoriums.
The foreclosure moratorium does not apply to vacant or abandoned properties. For a complete summary of the prior Agency Guidance, see our prior alert here.
Servicers of non-Federally backed mortgage loans are encouraged to review state and local moratoriums in effect as well as any court-imposed orders barring foreclosures which may be in place before proceeding with the foreclosure. Our attorneys at McGlinchey will continue to monitor the foreclosure moratoriums. If you need help understanding or interpreting the guidelines or have any other questions, please contact McGlinchey’s COVID-19 CFS Litigation Task Force.