Deadlines for COVID-19 related relief for borrowers with Fannie Mae and
Freddie Mac (GSE) mortgages were extended by the Federal Housing Finance Agency
(FHFA) for the second time in a little over two weeks. The agency said the new
changes were made to bring GSE programs into alignment with the deadlines for
the similar FHA and the VA programs which the White House had extended last
week.

The moratorium on foreclosures of GSE mortgages was changed from a March 31
expiration to June 30
as was the moratorium on evictions. The latter applies
only to GSE owned real estate (REO) that was foreclosed or taken through a
deed-in-lieu.

FHFA also announced another three-month extension of COVID-19 forbearance.
The available period during which borrowers impacted by the pandemic can defer
or make reduced mortgage payments will now be a maximum of 18 months. Eligibility
for the extension is limited to borrowers who are in a COVID-19 forbearance
plan as of February 28, 2021, and other limits may apply.  The option to
defer repayment of arrearages until the home is sold, refinanced, or at loan
maturity will now cover up to 18 months of missed payments.

FHFA Director Mark Calabria said of the changes, “Borrowers and the housing
finance market alike can benefit during the pandemic from the consistent
treatment of mortgages regardless of who owns or backs them. From the start of
the pandemic, FHFA has worked to keep families safe and in their home, while
ensuring the mortgage market functions as efficiently as possible.
Today’s extensions
of the COVID-19 forbearance period to 18 months and foreclosure and eviction
moratoriums through the end of June will help align mortgage policies across
the federal government.”

FHFA may extend or sunset these and other pandemic related policies based on
updated data and health risks. Homeowners and renters can visit consumerfinance.gov/housing for
current information on their relief options, protections, and key deadlines.

By Jann Swanson , dated 2021-02-26 09:11:08

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Courtesy of Mortgage News Daily

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