FHFA, FHA Extend Single-Family Eviction Moratoria through Sept. 30

The Federal Housing Finance Agency and the Federal Housing Administration on Friday extended their eviction moratoria through Sept. 30 for foreclosed borrowers and other occupants.

The announcements also noted expiration of the foreclosure moratorium on Saturday, July 31.

FHA published Mortgagee Letter (ML) 2021-19, Extension of the Foreclosure-Related Eviction Moratorium and Expiration of the Foreclosure Moratorium in Connection with the Presidentially-Declared COVID-19 National Emergency.

This extension followed President Biden’s announcement on July 29 that federal agencies would use their authority to extend their respective eviction moratoria through the end of September, which will provide continued protection for households living in federally insured, single-family properties. FHA’s eviction moratorium extension will avoid displacement of foreclosed borrowers and other occupants who need more time to access suitable housing options after foreclosure.

“We must continue to do everything within our authority to make sure that foreclosed borrowers who are impacted by the pandemic have the time and resources to secure safe and stable housing, whether it’s in their current homes, or by obtaining alternative housing options,” said Principal Deputy Assistant Secretary for Housing Lopa P. Kolluri. “We don’t want to see any individuals or families displaced unnecessarily while trying to recover from the pandemic.”

Mortgage servicers must continue to halt evictions for FHA Single Family Title II forward and Home Equity Conversion Mortgage foreclosed properties, except for those properties that are legally vacant or abandoned. Mortgage servicers may initiate or continue foreclosures in accordance with FHA requirements once the Single Family foreclosure moratorium expires as planned on July 31, but may not evict a foreclosed borrower or other occupant.

The FHFA announcement extended the moratorium on Fannie Mae and Freddie Mac (single-family real estate owned evictions. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions.

“The pandemic continues to have an outsized impact on the ability of Americans to meet their monthly rent or mortgage payments. Today’s extension of the eviction moratorium protects particularly vulnerable Americans who otherwise would be at risk of losing a place to live,” said Acting Director Sandra L. Thompson.