WASHINGTON—The Federal Housing Finance Agency (FHFA) has again extended its moratorium on foreclosures and evictions, this time through March 31. The policy applies to government-sponsored enterprise (GSE)-backed single-family mortgages and GSE-owned properties.
The extension comes as more than 1.5 million mortgages in forbearance are set to expire in the coming months, as CUToday.info reported here.
In addition, the FHFA announced that borrowers with a GSE-backed mortgage who are on a COVID-19 forbearance plan as of Feb. 28, 2021, may be eligible for an additional forbearance extension of up to three months.
COVID-19 Payment Deferral for borrowers with a GSE-backed mortgage can now cover up to 15 months of missed payments, the FHFA also announced in the release. COVID-19 Payment Deferral allows those borrowers to repay their missed payments at the time the home is sold, refinanced, or at mortgage maturity.
Up to $2 Billion in Costs
The FHFA is projecting the foreclosure and eviction moratoriums will cost the GSEs as much as $2 billion. The agency in December began implementing a 0.5% adverse market refinance fee on GSE-backed mortgages as a way to protect the GSEs from losses.
Other loan origination flexibilities provided by the FHFA are set to expire Feb. 28. The agency has extended those deadlines several times in order to ensure continued support for borrowers amid the coronavirus pandemic, NAFCU noted.
The FHFA has indicated that it will continue to monitor the effect of the coronavirus on renters, borrowers, and the mortgage market and update policies as needed.