In response to the significant economic disruptions caused by the outbreak of COVID-19, on March 18, 2020, the U.S. Government announced two significant measures geared towards providing stability to millions of homeowners and renters:
- The Department of Housing and Urban Development (HUD) directed the Federal Housing Administration (FHA) to implement an foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages for the next 60 days, with immediate effect. HUD’s foreclosure moratorium applies with respect to homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages. HUD’s guidance further directs mortgage servicers to (i) halt all new foreclosure actions and suspend all foreclosure actions currently in process; and (ii) cease all evictions of persons from FHA-insured single-family properties. HUD’s press release is available here.
- Additionally, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to suspend foreclosures and evictions for at least 60 days due to COVID-19. The foreclosure and eviction suspension applies to homeowners with Fannie or Freddie-backed single-family mortgage. FHFA’s press release is available here.
Mark L. Brasee
Paul J. Halbur
This article has been prepared for general information purposes and (1) does not create or constitute an attorney-client relationship, (2) is not intended as a solicitation, (3) is not intended to convey or constitute legal advice, and (4) is not a substitute for obtaining legal advice from a qualified attorney. Always seek professional counsel prior to taking action.