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The Federal Housing Finance Agency (FHFA) has again extended its moratorium on foreclosures and evictions through March 31, 2021. The policy applies to government-sponsored enterprise (GSE)-backed single-family mortgages and GSE-owned properties.

In addition, the FHFA announced that borrowers with a GSE-backed mortgage who are on a COVID-19 forbearance plan as of Feb. 28, 2021, may be eligible for an additional forbearance extension of up to three months.

COVID-19 Payment Deferral for borrowers with a GSE-backed mortgage can now cover up to 15 months of missed payments, the FHFA also announced in the release. COVID-19 Payment Deferral allows those borrowers to repay their missed payments at the time the home is sold, refinanced, or at mortgage maturity.

The FHFA is projecting the foreclosure and eviction moratoriums will cost the GSEs as much as $2 billion. The agency in December began implementing a 0.5 percent adverse market refinance fee on GSE-backed mortgages as a way to protect the GSEs from losses. NAFCU came out strong against the fee when it was announced – arguing that it would add financial costs to credit unions trying to support members amid the pandemic – and secured a delay in its implementation.

Other loan origination flexibilities provided by the FHFA are set to expire Feb. 28. The agency has extended these several times in order to ensure continued support for borrowers amid the coronavirus pandemic.

The FHFA has indicated that it will continue to monitor the effect of the coronavirus on renters, borrowers, and the mortgage market and update policies as needed.

NAFCU will continue to monitor the FHFA's efforts to support liquidity in the mortgage market and work with the agency to ensure credit unions' concerns are addressed.