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The Department of Housing and Urban Development (HUD) announced it plans to extend its foreclosure and eviction moratorium through the end of the year, according to news reports, as homeowners continue to deal with the impact of the coronavirus pandemic. The moratorium had been set to expire Aug. 31.

The moratorium applies to loans backed by the Federal Housing Administration (FHA) and does not apply to government-sponsored enterprise (GSE) loans. The CARES Act had provided a 120-day moratorium on evictions for all federally-backed mortgage loans, but that provision expired in July. The Federal Housing Finance Agency (FHFA) extended the GSEs' moratorium to at least Aug. 31.

President Donald Trump recently signed an executive order stating that federal agencies will work to minimize evictions and foreclosures amid the pandemic and directed HUD Secretary Ben Carson to "take action, as appropriate and consistent with applicable law, to promote the ability of renters and homeowners to avoid eviction or foreclosure resulting from financial hardships caused by COVID-19. Such action may include encouraging and providing assistance to public housing authorities, affordable housing owners, landlords, and recipients of Federal grant funds in minimizing evictions and foreclosures."

As federal housing agencies have worked to support borrowers amid the coronavirus pandemic, NAFCU has urged relief be provided to mortgage servicers as well. The FHFA heeded NAFCU's call to provide mortgage servicers with some relief and provided a four-month limit on advances of principal and interest payments for loans in forbearance sold to the GSEs. It has also allowed the GSEs to purchase certain-single family mortgage loans in forbearance and extended the policy for loans originated through Aug. 31.

NAFCU also has cautioned the FHFA against pursuing a 0.5 percent adverse market refinance fee, which the agency said is intended to mitigate risks brought on by the pandemic.

Housing issues will be featured at NAFCU's upcoming Virtual Congressional Caucus, at which FHFA Director Dr. Mark Calabria is slated to speak. Learn more about Caucus and register now.