Fannie Mae Announces Suspension of Foreclosures and Evictions on Single-Family Mortgages Through Year-End
WASHINGTON, DC -
To support households impacted by COVID-19, Fannie Mae (FNMA/OTCQB) 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 Americans. 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:
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Opinions, analyses, estimates, forecasts and other views of Fannie Mae's Economic & Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR group bases its opinions, analyses, estimates, forecasts and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current or suitable for any particular purpose. Changes in the assumptions or the information underlying these views, including assumptions about the duration and magnitude of shutdowns and social distancing, could produce materially different results. The analyses, opinions, estimates, forecasts and other views published by the ESR group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.