The Federal Housing Finance Agency announced a slew of extensions meant to aid homeowners facing financial difficulty during the Covid-19 pandemic.
The agency said in a news release it extended its moratorium on foreclosures on single-family homes through March 31. It also announced the availability of an additional three months of mortgage forbearance, a protection that allows homeowners affected by the crisis to pause or reduce payments.
The Federal Housing Finance Agency, or FHFA, extended the maximum time a borrower can be in forbearance to 15 months, up from a year prior. The extensions apply to single-family homeowners with mortgages backed by
in a forbearance plan as of Feb. 28.
The forbearance extension comes at a time when more than 2.7 million homeowners are in active mortgage-forbearance plans—600,000 of which were set to expire by the end of March, according to the mortgage-analytics company Black Knight. “To keep families in their home during the pandemic, FHFA is allowing borrowers to be in COVID-19 forbearance for up to 15 months and extending the Enterprises’ foreclosure and eviction extension,” FHFA director
said in the release.
This is the first time the agency has extended its forbearance period, but the sixth time it has extended its foreclosure moratorium. In January, President Joe Biden requested that the FHFA, as well as other agencies like the U.S. Department of Housing and Urban Development, extend its foreclosure moratorium through at least March. The agency estimates that its Covid-19 foreclosure moratorium will cost Freddie Mac and Fannie Mae between $1.5 and $2 billion, according to the release.
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