Fannie Mae Announces Suspension of Foreclosures and Evictions on Single-Family Mortgages Through Year-End

Rhea-AI Summary

Fannie Mae has announced an extension of the temporary moratorium on foreclosures and evictions related to single-family mortgages until December 31, 2020. This action supports households affected by COVID-19 and was previously set to expire on August 31, 2020. The moratorium applies to properties owned by Fannie Mae and provides options for homeowners facing financial hardship, including forbearance plans to postpone mortgage payments for up to 12 months.

Positive

• Extension of foreclosure and eviction moratorium until December 31, 2020, provides additional support for distressed homeowners.
• Homeowners can access mortgage assistance options and forbearance plans due to COVID-19.

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• None.

WASHINGTON, Aug. 27, 2020 /PRNewswire/ -- To support households impacted by COVID-19, Fannie Mae (OTCQB: FNMA) today announced an extension of the temporary moratorium on foreclosures and evictions until December 31, 2020. The moratorium, which was previously set to expire on August 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 December 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 

*Operated by Clearpoint Credit Counseling Solutions, a division of MMI, through its Project Porchlight program

Here to Help
Since March, Fannie Mae has taken a number of actions to help homeowners and renters facing financial hardship due to COVID-19. In addition to suspending foreclosures and evictions affecting homeowners, Fannie Mae extended eviction protections to multifamily renters when the property owner received a forbearance, reminded homeowners they are never required to repay missed payments after a forbearance period all at once, shared tips to help homeowners avoid foreclosure fraud or scams, and announced a new COVID-19 payment deferral option to help homeowners who are ready to resume their monthly mortgage payments following a COVID-19 forbearance. These and other resources we make available are part of our ongoing Here to Help education effort, aimed at helping homeowners and renters impacted by COVID-19 understand the options available to them.

About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of U.S. households. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit: fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

Fannie Mae Newsroom
https://www.fanniemae.com/news

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Fannie Mae Resource Center
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SOURCE Fannie Mae

FAQ

What is the latest update on Fannie Mae's eviction moratorium?

Fannie Mae has extended the moratorium on foreclosures and evictions until December 31, 2020.

How can homeowners affected by COVID-19 get help from Fannie Mae?

Homeowners can request assistance by contacting their mortgage servicer and may be eligible for forbearance plans.

What are the options for homeowners under Fannie Mae's COVID-19 guidelines?

Homeowners can access forbearance, have late fees waived, and must be reported accurately to credit bureaus.