WASHINGTON—Fannie Mae and Freddie Mac will extend the moratoriums on single-family foreclosures and real estate owned evictions until at least Jan. 31, 2021, the Federal Housing Finance Agency (FHFA) announced.
The foreclosure moratorium applies to GSE-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by a GSE through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on Dec. 31, 2020, the FHFA noted.
“Extending Fannie Mae and Freddie Mac's foreclosure and eviction moratoriums through January 2021 keeps borrowers safe during the pandemic," said FHFA Director Mark Calabria in a statement. “This extension gives peace of mind to the more than 28 million homeowners with an Enterprise-backed mortgage."
The FHFA said it projects additional expenses of $1.1 to $1.7 billion will be borne by the GSEs due to the existing COVID-19 foreclosure moratorium and its extension.
“This is in addition to the $6 billion in costs already incurred by the Enterprises. FHFA will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed,” the FHFA said.