March 19, 2020

FHFA directs GSEs to suspend foreclosures

Housing marketThe Federal Housing Finance Agency (FHFA) Wednesday directed the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, to support those borrowers who are at risk of losing their homes as a result of the coronavirus by suspending foreclosures and evictions for at least 60 days.

This suspension applies to homeowners with GSE-backed single-family mortgage. Previously, the GSEs reminded mortgage servicers that payment forbearance is available to borrowers, which allows for a mortgage payment to be suspended for up to 12 months due to hardship caused by the pandemic.

The agency also reminded borrowers who are affected by the coronavirus and may have a hard time making mortgage payments to contact their mortgage servicers as soon as possible.

Fannie Mae and Freddie Mac have additional information on these relief efforts available online.

The Department of Housing and Urban Affairs (HUD), in consultation with the Trump administration, also authorized the Federal Housing Administration (FHA) to suspend foreclosures and evictions for single-family homeowners with FHA-insured mortgages for the next 60 days.

Credit unions around the country are stepping up to help members impacted by the coronavirus. NAFCU remains in close contact with the Trump administration, Congress, and regulators to ensure credit unions have flexibility to meet members' financial needs and ensure the health and safety of employees during this time.

NAFCU has a resource page available on the virus, as well as a new economic brief on its potential impact and will begin publishing new Compliance Blogs daily to address credit unions' compliance concerns.