HUD, FHFA Clarify Timeline for Foreclosure and Eviction Suspensions

Hours after President Trump announced a suspension of foreclosures and evictions for mortgages backed by the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA), official statements from FHFA and HUD clarified that the policy will extend at least 60 days. This is contrary to earlier reporting that pegged the window for these suspensions as extending “until the end of April.”

During an earlier press conference Wednesday, President Trump had said, “Today I am also announcing that the Department of Housing and Urban Development is providing immediate relief to renters and homeowners by suspending all foreclosures and evictions until the end of April. We are working very closely with Dr. Ben Carson and everybody from HUD.”

“Today’s actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns,” said HUD Secretary Dr. Benjamin Carson. “The health and safety of the American people is of the utmost importance to the Department, and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.”

“This foreclosure and eviction suspension allows homeowners with an Enterprise-backed mortgage to stay in their homes during this national emergency," said FHFA Director Mark Calabria.

This development follows upon the FHFA’s announcement earlier this month that the GSEs would provide payment forbearance to borrowers impacted by the coronavirus. This forbearance would permit a mortgage payment to be suspended for up to 12 months due to hardship considerations.