FHFA Suspends Foreclosure for Borrowers Applying for Relief through Homeowner Assistance Fund
Servicers with mortgages backed by Fannie Mae and Freddie Mac must delay the foreclosure process for up to 60 days
The Federal Housing Finance Agency on Wednesday said Fannie Mae and Freddie Mac will require servicers to suspend foreclosure activities for up to 60 days if the servicer has been notified that a borrower has applied for assistance under the Department of the Treasury’s Homeowner Assistance Fund.
“FHFA is committed to sustainable homeownership. Today’s action will provide borrowers who need temporary mortgage assistance with additional time to be evaluated for relief through their state’s approved Homeownership Assistance Fund,” said FHFA Acting Director Sandra L. Thompson.
The Homeowner Assistance Fund was created to prevent mortgage delinquencies and defaults, foreclosures, loss of utilities or home energy services and displacement of homeowners experiencing financial hardship after January 21, 2020. Under the American Rescue Plan Act of 2021, HAF provides up to $9.96 billion for states, territories and tribal entities to provide financial relief for homeowners. HAF is administered by the Department of the Treasury