Federal Agencies Extend Their Covid-19 Forbearance Measures

As part of the Biden-Harris Administration’s efforts to deliver Covid-19 relief to American families, the Departments of Housing and Urban Development (HUD), Veterans Affairs (VA) and Agriculture (USDA) announced a coordinated extension and expansion of federal Covid-19 forbearance and foreclosure relief measures for homeowners with government-backed mortgages, which were due to expire in March 2021.

The three federal agencies are extending the foreclosure moratorium for homeowners with federally backed loans—those guaranteed by the Federal Housing Administration (FHA), VA and USDA—through June 30, 2021, as well as extending the mortgage payment forbearance enrollment window until June 30, 2021. The FHA, VA and USDA are also providing up to six months of additional mortgage payment forbearance for borrowers who entered federal mortgage forbearance on or before June 30, 2020. Additionally, on February 9, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Government-Sponsored Entities, or GSEs) are extending the forbearance period for eligible GSE-backed mortgages, who are on a Covid-19 forbearance plan as of February 28, 2021, by up to three months. According to the White House, these coordinated efforts will cover 70 percent of existing single-family home mortgages. 
 

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.