Fannie Mae Announces Suspension of Foreclosures and Evictions on Single-Family Mortgages Through Year-End
To support households impacted by COVID-19, Fannie announced an extension of the temporary moratorium on foreclosures and evictions until Dec. 31, 2020. The moratorium, which was previously set to expire on Aug. 31, 2020, is effective immediately and applies to properties with single-family mortgages backed by Fannie Mae. The suspension of evictions applies only to homes owned by Fannie Mae and does not apply to tenants in homes that have not been foreclosed.
"Fannie Mae, along with our lending and servicing partners, remains committed to supporting households who are experiencing job loss, a reduction in work hours or income, or other issues due to COVID-19," said Malloy Evans, senior vice president and single-family chief credit officer, Fannie Mae. "With this latest extension of the foreclosure and eviction moratorium, we can continue to help ensure distressed borrowers are able to remain in their homes during this national emergency."
"For homeowners who may be struggling with their mortgage or facing possible foreclosure, assistance options are available and can provide much-needed relief. We encourage you to reach out to your servicer as soon as possible to get help," said Evans.
Under Fannie Mae's guidelines for single-family mortgages:
- Homeowners who are adversely impacted by the COVID-19 national emergency may request mortgage assistance by contacting their mortgage servicer.
- Foreclosure-related activities (except as to vacant or abandoned properties) and evictions of occupants from real estate owned by Fannie Mae are suspended until Dec. 31, 2020.
- Homeowners impacted by COVID-19 are eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months.
- Servicers must report the status of the mortgage loan to the credit bureaus in accordance with the Fair Credit Reporting Act, including as amended by the CARES Act, for homeowners impacted by COVID-19.
- Homeowners in a forbearance plan will not incur late fees .
- After forbearance, a servicer must work with the borrower on a permanent plan to help maintain or reduce monthly payment amounts as necessary, including a loan modification.
Homeowners can find out if they have a Fannie Mae-owned mortgage by visiting www.KnowYourOptions.com/loanlookup. Fannie Mae also offers help to homeowners navigating the broader financial effects of this crisis through the company's Disaster Response Network, including:
- A needs assessment and personalized recovery plan
- Help requesting financial relief from insurance, servicers and other sources
- Web resources and ongoing guidance from experienced disaster relief advisors
Source: Fannie Mae