Fannie Mae and Freddie Mac Foreclosure and Eviction Moratoriums Extended Through March 31, 2021

On February 9, 2021, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) are extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions until March 31, 2021.  The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on February 28, 2021.

The FHFA’s announcement mirrors the U.S. Department of Housing and Urban Development’s extension through March 31, 2021, of its foreclosure and eviction moratorium for borrowers with FHA-insured single-family mortgages covered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  

The FHFA also announced that borrowers with a mortgage backed by Fannie Mae or Freddie Mac, and who are on a COVID-19 forbearance plan as of February 28, 2021, may be eligible for an additional forbearance extension of up to three months.  Further, COVID-19 Payment Deferral for borrowers with an Enterprise-backed mortgage can now cover up to 15 months of missed payments.  COVID-19 Payment Deferral allows those borrowers to repay their missed payments at the time the home is sold, refinanced, or at mortgage maturity.

Weltman, Weinberg & Reis Co., LPA is actively engaged with its loan servicer clients in promoting and processing loss mitigation alternatives.  If we can be of assistance with regard to this or any other real estate matter, please contact Larry Rothenberg at 216.579.5038, lrothenberg@weltman.com.  

This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.