Biden Administration Announces Extension of Foreclosure Moratoriums and Forbearance Options

In the wake of the early months of COVID-19, the Federal Housing Finance Agency (FHFA) and the U.S. Department of Housing and Urban Development (HUD) instituted a foreclosure and eviction moratorium on Fannie Mae and Freddie Mac single-family foreclosures and real estate owned evictions.  Additionally, the FHFA offered COVID-related forbearances in order to defer mortgage payments.  After multiple extensions, these COVID-relief options were set to expire in March of 2021.

However, on February 16, 2021, the Biden Administration released a statement providing that HUD, the Department of Veteran Affairs (VA), and the Department of Agriculture (DOA) will coordinate to extend and expand the previously instituted COVID forbearance and foreclosure moratorium.

Now, the foreclosure moratorium will be extended through June 30, 2021; borrowers may enroll in a forbearance until June 30, 2021; and up to six (6) months of additional mortgage payment forbearance, in three-month increments, will be provided to borrowers who entered into a forbearance before June 30, 2020.

While the White House’s statement and release discusses statistics on renters being behind on rent, the relief announced does not seem to provide for an extension of the eviction moratorium, which concludes on March 31, 2021.

Resources for both homeowners and renters are now provided on the Consumer Finance Protection Bureau’s website at www.consumerfinance.gov/housing.

While this article is not intended to provide legal advice, the authors are available for retention to assist with an in-depth analysis regarding compliance with this new and evolving guidance.

By:

Randall L. Saunders

randall.saunders@nelsonmullins.com

Megan Ware-Fitzgerald

megan.fitzgerald@nelsonmullins.com

 

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