The Federal Housing Finance Agency (FHFA) announced on May 14 that Fannie Mae and Freddie Mac (the GSEs) are extending their moratorium on foreclosures and evictions until at least June 30, 2020. We had discussed the original moratorium, which was set to expire on May 17, in a previous blog post. The foreclosure moratorium applies to GSE-backed, single-family mortgages only.
Separately, the day before, the FHFA announced a new payment deferral option for borrowers with a financial hardship that have been able to receive forbearance due to the coronavirus (COVID-19) pandemic. Specifically, such borrowers who are able to return to making their normal monthly mortgage payment will be provided the ability to repay their missed payments at the time the home is sold, refinanced, or upon loan maturity. The borrower's monthly mortgage payment will not change. Mortgages that exercise the payment deferral option will remain in GSE mortgage-backed securities (MBS), subject to the terms of the trust agreements. Mortgage servicers will begin offering the payment deferral repayment option starting July 1, 2020.