What Does the FHFA Moratorium Extension Mean for Residential Real Estate Investors?

The national moratorium on evictions and foreclosures has been extended again, kicking the can down the road for what may be an inevitable reckoning for millions of homeowners. It could ramp up the pressure on a lot of landlords just hanging on, too.

The Federal Housing Finance Agency (FHFA) announced Wednesday that it has extended until “at least” Jan. 31 moratoriums on single-family foreclosures and real estate-owned (REO) evictions for residents of properties financed by Fannie Mae or Freddie Mac and the 11 Federal Home Loan Banks.

The FHFA says it’s extending the protections “to help borrowers at risk of losing their home due to the coronavirus national emergency” and says the foreclosure moratorium applies to -backed, single-family mortgages only. The agency says the REO eviction moratorium applies to properties that have been acquired by a GSE through foreclosure or deed in lieu of foreclosure transactions.

Giving peace of mind

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FHFA Extends Foreclosure Moratorium to Jan. 31. What to Know.

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Trong Nguyen/Dreamstime

The Federal Housing Finance Agency has extended its moratoriums on single-family foreclosures and real estate-owned evictions until January 31, 2021, at the earliest, the agency announced Wednesday.

The moratoriums, part of the FHFA’s response to the economic impacts of the global pandemic, shields homeowners with mortgages backed by

Freddie Mac

and

Fannie Mae

from foreclosures and evictions. Those suspensions were previously set to expire on Dec. 31.

The news is likely welcome for homeowners struggling financially through the crisis as the virus surges and employment slows. The FHFA says more than 28 million homeowners’ loans are backed by the government-sponsored entities, or GSEs, which buy loans from mortgage originators and repackage them as mortgage-backed securities. The agency estimates that the extension will cost the GSEs $1.1 to $1.7 billion dollars.

The announcement is the most recent continuation of the pause on GSE-backed foreclosures and evictions, but

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FHFA Extends Foreclosure Moratorium – DSNews

foreclosuresFHFA Wednesday announced the fourth extension of its foreclosure and eviction moratorium through “at least” January 31.

This extension will continue the moratorium on single-family foreclosures and real estate owned (REO) evictions until at least January 31, 2021, according to a news release. It applies to GSE-backed, single-family mortgages only. (However, when the FHFA announced the previous extension, which was set to expire December 31, FHA soon followed suit.)

FHFA says the REO eviction moratorium applies to properties that have been acquired by a GSE through foreclosure or deed-in-lieu of foreclosure transactions.

“Extending Fannie Mae and Freddie Mac’s foreclosure and eviction moratoriums through January 2021 keeps borrowers safe during the pandemic,” said FHFA Director Mark Calabria. “This extension gives peace of mind to the more than 28 million homeowners with a [GSE]-backed mortgage.”

According to a press release, FHFA at this juncture projects additional expenses of $1.1 to $1.7 billion

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FHFA extends foreclosure and eviction moratorium to Jan. 31

The Federal Housing Finance Agency extended its moratorium on foreclosures and evictions for borrowers with mortgages backed by Fannie Mae and Freddie Mac until Jan. 31.

This marks the fourth time the government agency has extended the moratorium, now another month past its most recent deadline of Dec. 31. According to FHFA director Mark Calabria, extending Fannie Mae and Freddie Mac’s foreclosure and eviction moratoriums through January 2021 keeps borrowers safe during the pandemic

“This extension gives peace of mind to the more than 28 million homeowners with an Enterprise-backed mortgage,” said Calabria.

Fannie and Freddie’s foreclosure moratorium applies to enterprise-backed, single-family mortgages only. However, the extension also applies to real estate owned (REO) evictions, which are properties that have been acquired by an enterprise through foreclosure or deed-in-lieu of foreclosure transactions.

As a result, the FHFA projects additional expenses of $1.1 to $1.7 billion will be borne by the

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FHFA Releases Foreclosure-Prevention Report – DSNews

mortgage loans performanceThe government-sponsored enterprises (GSEs) completed 166,942 foreclosure prevention actions in August, according to new data from the Federal Housing Finance Agency (FHFA).

Fannie Mae and Freddie Mac performed 3,599 permanent loan modifications in August, with 23% of these transactions being modifications with principal forbearance. Modifications with extend-term accounted for 61% of all loan modifications during the month.

The FHFA also reported that the number of borrowers who received payment deferrals after completing a COVID-19 related forbearance plan dropped from 108,492 in July to 60,364 in August. Initiated forbearance plans slid from 88,989 in July to 77,546 in August, a 13% decline, while the total number of loans in forbearance plans decreased from 1,263,980 at the end of July to 1,147,033 at the end of August, representing approximately 4% of the total loans serviced and 82.1% of the total delinquent loans. There were 308 short sales and deeds-in-lieu of foreclosure completed

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