Published by Forbes on June 18, 2020
The foreclosure moratorium had been set to expire at the end of June.
The Federal Housing Finance Agency (FHFA) this week announced that it would extend its ban on foreclosures and evictions until at least Aug. 31. This is the second time the FHFA has lengthened its moratorium, which it adopted in the wake of the COVID-19 pandemic. The move has the potential to impact millions of homeowners.
The FHFA oversees government-sponsored enterprises Fannie Mae and Freddie Mac, as well as the 11 Federal Home Loan Banks. Together, these entities provide more than $6.4 trillion in aggregate funding for U.S. mortgage markets and financial institutions.
“During this national health emergency no one should worry about losing their home,” FHFA Director Mark Calabria said in a statement. The foreclosure moratorium applies only to enterprise-backed, single-family mortgages, which make up about 70% of home loans nationwide.
The Federal Housing Administration similarly said it would extend a moratorium through August for homeowners with FHA-insured single-family mortgages.
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