FHA, FHFA, USDA and VA Extend Eviction and Foreclosure Moratoriums

On August 27, the Federal Housing Administration (FHA) announced an extension of its foreclosure and eviction moratorium through December 31, 2020. In Mortgagee Letter 2020-27, the FHA states that the extension to the moratorium on foreclosure applies to FHA-insured Single-Family mortgages and suspends the initiation of foreclosures and foreclosures in process for these mortgages, excluding vacant or abandoned properties. The letter also notes that evictions of persons from properties with FHA-insured Single-Family mortgages are also suspended through December 31, 2020, except for actions to evict occupants of legally vacant or abandoned properties. In response to the FHA’s announcement, Chairwoman of the House Financial Services Committee Maxine Waters (D-CA-43) released a statement on August 27, in which she called for enacting federal protections and assistance that are focused on impacted renters who are not protected by the moratorium and remain at risk of eviction.

Furthermore, on August 27, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend their respective moratoriums on foreclosures and real estate owned (REO) evictions through December 31, 2020. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages, and the moratorium on REO evictions applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. On August 28, the USDA extended the suspension of foreclosures and related evictions for borrowers with USDA single family housing Direct and Guaranteed loans, excluding vacant or abandoned dwellings, through the end of the year. On August 24, the Department of Veterans Affairs (VA) extended its foreclosure and eviction moratoriums for properties with VA-guaranteed loans through December 31, 2020.

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