GSEs, FHA Extend Foreclosure/REO Eviction Moratoria

The government-sponsored enterprises and HUD announced they would extend foreclosure moratoria to all GSE-backed mortgages and FHA-backed mortgages, respectively and extend eviction moratoria through at least Dec. 31.

The previous moratoria were set to expire on Aug. 31.

The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, said the foreclosure moratorium applies to GSE-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by either Fannie Mae or Freddie Mac through foreclosure or deed-in-lieu of foreclosure transactions.

FHA said its extension applies to homeowners with FHA-insured single family mortgages covered under the CARES Act.

This extension provides an additional four months of housing security to homeowners, as they will not fear losing their homes as they work to recover financially from the adverse impacts of the pandemic. With this third extension, FHA has now provided more than nine months of foreclosure and eviction relief to FHA-insured homeowners

FHFA Director Mark Calabria said FHFA projects additional expenses of $1.1 to 1.7 billion will be borne by the Enterprises due to the existing COVID-19 foreclosure moratorium and its extension. He said FHFA will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed.

“This protects more than 28 million homeowners with an Enterprise-backed mortgage,” Calabria said.

“Because homeownership is the largest wealth builder for the majority of the nation’s families, providing relief from foreclosure and eviction to those who are in jeopardy of losing their hard-earned wealth, through no fault of their own, is a priority,” said HUD Secretary Ben Carson.

“Fannie Mae, along with our lending and servicing partners, remains committed to supporting households who are experiencing job loss, a reduction in work hours or income, or other issues due to COVID-19,” said Malloy Evans, Fannie Mae Senior Vice President and Single-Family Chief Credit Officer.  

“We are committed to helping families affected by the pandemic, and we have instructed servicers to work with borrowers who are unable to make their mortgage payments to ensure they are evaluated for a forbearance plan or other appropriate assistance,” said Donna Corley, executive vice president and head of Freddie Mac’s Single-Family business. “

FHA’s Single Family foreclosure and eviction moratorium has been in place since March 18 and continues to apply to homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages. More information can be found at Mortgagee Letter (ML) 2020-27, Extension of Foreclosure and Eviction Moratorium in Connection with the Presidentially-Declared COVID-19 National Emergency.

More information can be accessed at the joint HUD, FHFA and the Consumer Financial Protection Bureau website at