news.cuna.org/articles/119045-fhfa-extends-moratoriums-covid-related-loan-flexibilities
FHFA

FHFA extends moratoriums, COVID-related loan flexibilities

February 10, 2021

The Federal Housing Finance Agency (FHFA) announced this week that Fannie Mae and Freddie Mac (the Enterprises) are extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions until March 31. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only.

The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions.

FHFA also announced that borrowers with a mortgage backed by Fannie Mae or Freddie Mac may be eligible for an additional forbearance extension of up to three months. Eligibility for the extension is limited to borrowers who are on a COVID-19 forbearance plan as of February 28, and other limits may apply.

COVID-19 Payment Deferral for borrowers with an Enterprise-backed mortgage can now cover up to 15 months of missed payments. COVID-19 Payment Deferral allows those borrowers to repay their missed payments at the time the home is sold, refinanced, or at mortgage maturity.

FHFA also announced Fannie and Freddie will also extend several loan origination flexibilities until March 31.

Extended flexibilities include:

  • Alternative appraisals on purchase and rate term refinance loans;
  • Alternative methods for documenting income and verifying employment before loan closing; and
  • Expanding the use of power of attorney to assist with loan closings.

FHFA continues to monitor the effect of the COVID-19 servicing policies on borrowers, the Enterprises and their counterparties, and the mortgage market.  FHFA may extend or sunset its policies based on the data and the health risk.