Fannie Mae and Freddie Mac completed 8,836 foreclosure prevention actions in February, according to the latest data from the Federal Housing Finance Association (FHFA). This brings the total to 4,424,910 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.
There were 5,376 permanent loan modifications in February, bringing the total to2,401,285 since the conservatorships began in September 2008. Twenty-two percent of modifications in February were modifications with principal forbearance. Modifications with extend-term only accounted for 65% of all loan modifications during the month. There were 364 short sales and deeds-in-lieu of foreclosure completed in February, down 18%compared with January 2020.
With a surge in foreclosures expected post-forbearance due to COVID-19, foreclosure and eviction moratoriums backed by Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA) have been extended to June 30. Deadlines for all foreclosure and eviction moratoriums were set to expire on Sunday.
“During this national health emergency, no one should be forced from their home," said FHFA Director Dr. Mark A. Calabria. “Extending the foreclosure and eviction moratoriums protects homeowners and renters with an Enterprise-backed mortgage and provides certainty for families.”
The FHA announced that it would halt all new foreclosure actions and suspend all foreclosure actions currently in process, excluding legally vacant or abandoned properties. Also, the Administration will cease all evictions of persons from FHA-insured Single Family properties, excluding actions to evict occupants of legally vacant or abandoned properties.
“We made it clear at the beginning of this pandemic that no American should have to worry about losing their home amidst a crisis. Today’s announcement ensures that commitment,” said U.S. Department of Housing and Urban Development (HUD) Secretary Dr. Benjamin Carson. “While we have made great strides in fighting this virus, the fact remains that many Americans are still struggling as we work diligently to get our economy back on sound footing, which I have full confidence we will do through the leadership of the President.”