June 24, 2021
Client Alert: Biden-Harris Administration Extends FHFA Moratorium to July 31, 2021On June 24, 2021, the Biden-Harris Administration announced that the existing foreclosuremoratorium for homeowners with government-backed mortgages would be extended to July 31, 2021 in an effort to protect homeowners experiencing aftershocks from the pandemic.
The decision comes on the heels of the Center for Disease Control’s decision to extend the eviction moratorium for one final month through the end of July, to prevent an anticipated wave of evictions caused by the economic fallout during the COVID-19 pandemic.
The Federal Housing Finance Agency (FHFA) moratorium applies to single family mortgagesbacked by Fannie Mae and Freddie Mac, as well as properties that have been acquired by one of these government sponsored enterprises through foreclosure or a deed in lieu of foreclosure transaction. As has been the case throughout, homeowners with mortgages in the private market are not protected through the FHFA moratorium.
The extension of the moratorium comes as the Consumer Financial Protection Bureau works to finalize a rule first proposed in April 2021 to restrict mortgage servicers from starting foreclosure proceedings until after December 31, 2021. The CFPB plans to finalize the regulations, with a number of carveouts, before the end of August.
Read the U.S. Government's fact sheet for more information.