FHFA Suspends Foreclosure for Borrowers with GSE-Backed Loans Applying for Assistance

On April 7, Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Government-Backed Enterprises, or GSEs) will require mortgage servicers to suspend foreclosure activities for up to 60 days if a borrower with a GSE-backed loan has applied for assistance from the Treasury’s Homeowner Assistance Fund. Authorized by the American Rescue Plan Act of 2021 (ARPA), the Homeowner Assistance Fund provides up to $9.96 billion for states, territories, and tribal entities to provide financial relief for homeowners. These funds may be used by grantees to provide assistance to eligible homeowners experiencing financial hardship after January 21, 2020, including mortgage payment assistance, payment assistance for homeowner’s utilities, and payment assistance for delinquent property taxes.