On Wednesday March 18, 2020, the FHFA announced a directive to help homeowners impacted by the COVID-19. To lessen the potential for those with single-family mortgages backed by Fannie Mae or Freddie Mac from losing their homes, all foreclosures and evictions will be suspended for the next 60 days. In light of the national emergency caused by the virus, affected homeowners are being urged to reach out to their servicers as soon as possible to ensure they receive assistance under this policy. The FHFA will follow the situation surrounding this emergency as it continues to develop, and update its policies accordingly.
On the same day, HUD announced it would also suspend evictions and foreclosures for homeowners with FHA-insured mortgages for 60 days. HUD guidance directs mortgage servicers to halt or suspend all foreclosure and eviction actions against those living in FHA-insured single-family homes. Additionally, servicers are encouraged to provide impacted homeowners with additional loss mitigation options, including short-term or long-term forbearance options, modifications to the existing mortgage, and more based on the borrower’s circumstances.