Mitigating Homeownership Related Financial Impacts of the Coronavirus
COVID-19 has created a very uncertain, rapidly changing set of circumstances for all our communities. Grounded Solutions Network calls for unity and a strong focus on supporting each other and most especially those families who may be at risk of falling behind on their mortgages due to quarantine related layoffs, reduced income, and illness.
On Wednesday, March 18, the U.S. Department of Housing and Urban Development (HUD) announced that it will suspend foreclosures and evictions for mortgages insured by the Federal Housing Administration (FHA) for 60 days (see Mortgagee Letter 2020-04). Similarly, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to suspend foreclosures and evictions for at least 60 days due to the coronavirus national emergency. The foreclosure and eviction suspension applies to homeowners with an Enterprise-backed single-family mortgage.
Earlier this month, FHFA announced that Fannie Mae and Freddie Mac would provide mortgage payment forbearance to those borrowers impacted by the coronavirus. Forbearance allows for a mortgage payment to be suspended for up to 12 months due to hardship caused by the coronavirus. Many major banks are also taking action now to help borrowers who may be economically impacted by the pandemic.
Please urge homeowners who may be facing economic hardship to immediately contact their servicer if they are at risk of falling behind on their mortgages, so that loss mitigation strategies can be explored and implemented quickly.