Fannie Mae foreclosure moratorium

WASHINGTON, January 20, 2021 – In one of his first assignments, President Joe Biden called on federal agencies to extend the moratorium on the deportation and execution of millions of Americans. In response, the U.S. Department of Agriculture announced the extension of the eviction and seizure moratorium on the USDA directly and securing single-family loans (SFHDLP and SFHGLP) until March 31, 2021.

The USDA claims that the COVID-19 pandemic has triggered an almost imminent housing supply crisis in the United States. Today, one in 10 landowners who got a mortgage is late paying. In addition to the actions taken, the Biden administration hopes to work with Congress on stronger and more aggressive actions to provide additional support for families and Americans affected by the pandemic.

Extension of the moratorium on enforcement:

The action announced today allows for the crisis and the eviction of the moratorium announced by the USDA, the Direct Family Home Loan Program (SFHGLP), and the Family Home Loan Guarantee Program (SFHGLP) on August 28, 2020, extended until March 31, 2021. The moratorium does not apply in cases where the USDA or loan service states that the property is vacant or abandoned.

Requirements for forbearance:

The lender must continuously provide the affected lender in accordance with the care, caring for the patient who provides a loan guarantee of up to 180 days. In addition, the initial period of patience can be extended to another 180 days at the request of the borrower. Lenders should present potential solutions that can be provided at the end of the payment process and explain to the borrower that a lump sum payment in arrears will not be required.

In the case of the aforesaid independence, no tax, penalty, or interest shall be paid to the borrower in excess of the amount calculated as if the borrower had paid the entire contract on time. Borrowers can approve the first 180 days of COVID-19 tolerance no later than the last day of the national emergency period announced by the President on March 13, 2020, or March 31, 2021.

Options for post forbearance:

After completing the avoidance, the borrower must work with the borrower to determine if he or she can return with the normal payment and, if so, provide a low-cost repayment plan or expand the requirements to repay the missing loan postponed. If the borrower is unable to continue to repay on a regular basis, the borrower must consider the borrower any means to reduce the loss found in HB-1-3555. The special remedy described in Chapter 18, Chapter 5, “Disaster Relief,” applies. Options include time extension, capitalization and extension, and loan repayment. This means that families are forbidden to obtain loans supported by Fannie Mae or Freddie Mac. FHFA pointed out that the suspension of REO relocation applies to assets purchased by GSE through expropriation or operation at the transaction site. The suspension is scheduled to end on February 28, 2021.

FHFA also stated that borrowers with Fannie Mae or Freddie Mac as collateral are eligible for a three-month extension. A press release from FHFA stated, “The legitimacy of the loan extension is limited to borrowers who accept the COVID-19 tolerance plan from February 28, 2021, and other restrictions may apply.” In addition, borrowers of corporate mortgages are eligible for COVID – 19 Postponed payments up to 15 months of outstanding payment. The postponed payment of COVID-19 allows these borrowers to pay what they owe when the house is sold, resold, or the mortgage will be worth it.

FHFA also announced Wednesday that the GSE would increase flexibility for certain loan sources until March 31. These changes include alternative purchasing and credit assessments with regular repayment and interest rates and alternatives to record revenue and pre-control. of employment, and expanding the use of licenses to enable the fulfillment of maturing loans in early late February. “Extensions and renovations have been put in place to keep families in their homes during the disaster,” said FHFA Director Mark Calabria.

According to the statement, “Currently, the cost of FHFA projects of 1.5 to $ 2 billion will be paid by Fannie and Freddie due to the suspension and expansion of COVID-19.” “FHFA continues to monitor the impact of COVID-19 service policies on lenders, GSEs, and peers, and the mortgage market. To comply, tenants must complete a notice of eviction from the CDC and send it to the landlord. The form informs you that you are particularly affected by the epidemic and are tired of all other ways to help. There is also a demand for income. Single tenants must earn less than $ 99,000 ($ 198,000 for couples) by 2020 or receive a discount. Tenants are also eligible when Logan is required to report his revenue from the Internal Revenue Service in 2019. Biden also asked Congress for $ 30 billion in rent. The proposal allocates $ 25 billion directly to owners for rent, and $ 5 billion will help cover energy and water costs through programs such as a low-income residential energy assistance program.

Help for homeowners. Shareholders provided by the Federal Housing Administration or granted by Fannie Mae and Freddie Mac are subject to additional Biden Administration moratorium on seizures and evictions. The FHA mortgage seizure moratorium has been extended until March 31, 2021. Freddie Mac and Fannie Mae add an exemption moratorium to February 28, 2021. The deadline to get pampering is also added. FHA-secured family mortgage borrowers must obtain tolerance for COVID-19 by February 28, 2021.

If your home loan is for a private company, ask your credit provider to see if they offer assistance. For example, Bank of America, Chase, and Wells Fargo have their own outpatient and outpatient programs. If you are unsure whether a loan has been fashioned or not, call a home loan officer and ask. Note that these mitigation measures can be extended as the epidemic progresses. When the CARES Act was signed into law in March 2020, the cessation of deportations and seizures was only scheduled for 60 days.