FHFA Extends Foreclosure/Eviction Moratorium
To help borrowers and renters who are at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend their single-family moratorium on foreclosures and evictions until at least December 31, 2020. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The current moratorium was set to expire on August 31st.
To help keep borrowers in their homes during the pandemic, FHFA is extending the Enterprises’ foreclosure and eviction moratoriums through the end of 2020,” said Director Mark Calabria. “This protects more than 28 million homeowners with an Enterprise-backed mortgage.”
FHFA will continue to monitor the coronavirus situation and update policies as needed. To understand the protections and assistance the government is offering people having trouble paying their mortgage, please visit the joint Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection /Bureau website at cfpb.gov/housing.
FHFA Further Extends Buying Loans in Forbearance & COVID-Related Loan Processing Flexibilities
The Federal Housing Finance Agency (FHFA) announced today that Fannie Mae and Freddie Mac (the Enterprises) will extend buying qualified loans in forbearance and several loan origination flexibilities until September 30, 2020. The changes are to ensure continued support for borrowers during the COVID-19 national emergency. The flexibilities were set to expire on August 31, 2020.
“Extending these COVID-19 flexibilities helps keep the mortgage market moving and borrowers safe during the pandemic,” said Director Mark Calabria.
Extended flexibilities include:
- Buying qualified loans in forbearance;
- Alternative appraisals on purchase and rate term refinance loans;
- Alternative methods for documenting income and verifying employment before loan closing; and
- Expanding the use of power of attorney to assist with loan closings.
As the financial capital of the country, New York should have the highest number of MAA members. Right now, New York is not the leader in MAA members. New York Real estate finance professionals need to be engaged in a vital way that directly impacts the way you do business. Whether you’re the CEO, CFO, CIO, Vice-President, Manager, Underwriter, Processor, Closer, QC, Servicer, in the Secondary Market–YOUR VOICE SHOULD BE HEARD. YOU SHOULD JOIN MAA–TODAY!
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New Website Launched by CFPB, Department of HUD, Federal Housing Finance Agency to Assist Consumers Impacted by COVID-19
May 12, 2020
Washington, D.C.–To ensure homeowners and renters have the most up to date and accurate housing assistance information during the COVID-19 national emergency, today the Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), and the Department of Housing and Urban Development (HUD) launched the new mortgage and housing assistance website, cfpb.gov/housing.
FHFA and HUD are offering extensive CARES Act assistance and protection for Americans having trouble paying their mortgage or rent during the COVID-19 national health emergency. This joint website consolidates the CARES Act mortgage relief, protections for renters, resources for additional help, and information on how to avoid COVID-19 related scams. It also provides lookup tools for homeowners to determine if their mortgage is federally backed, and for renters to find out if their rental unit is financed by FHA, Fannie Mae, or Freddie Mac. Click here for joint press release.
“This invisible enemy has a lot of Americans concerned about how they are going to stay safe and make ends meet,” said HUD Secretary Ben Carson. “No one should lose their home because of Coronavirus, and this new website is full of resources to help property owners and renters navigate these unprecedented times. HUD is continuing to monitor the needs of our FHA borrowers and HUD-assisted families, and we are prepared to take additional actions as needed.”
“During these uncertain times, consumers need reliable, fair, and accurate information on the protections and relief options available to them. This joint website achieves this important goal for homeowners and renters, outlining clearly the changes that policymakers are making to assist them,” said CFPB Director Kathleen L. Kraninger. “The Bureau will continue to do everything we can to protect the economic security of consumers.”
“Protecting and empowering borrowers and renters while ensuring the mortgage market functions as efficiently as possible has been a priority for FHFA during the national health emergency,” said Director Mark Calabria. “This joint website is a one-stop shop for information about the housing protections and assistance available from the government during this unprecedented crisis.”
“Our interagency team began working at the immediate onset of the emergency to address the nation’s housing challenges. This new resource was part of that effort, and will provide immeasurable value to the nation’s homeowners and renters during this critical time,” said FHA Commissioner Brian Montgomery. “For those in FHA-insured homes or Multifamily rental properties, we are here to tell you that help is available for those that need it. We’re using every available method, like this new website, to get the message out.”
In addition to the tools made available by HUD and FHFA, CFPB has partnered with FHFA on the Borrowers Protection Program that enables the agencies to share servicing information to protect borrowers during the coronavirus national emergency.
The CFPB has taken numerous steps to protect and assist consumers during the COVID-19 national emergency including making it easier for consumers to receive pandemic-relief payments; informing consumers about their options as it relates to mortgage forbearance; ensuring consumers will be able to continue to send remittance transfers without disruption; releasing a policy statement outlining the responsibility of credit reporting companies and furnishers; and, providing needed flexibility to enable financial companies to work with customers in need. The Bureau continues to process consumer complaints through the consumer complaint system. Through the consumer complaint system, the CFPB gets responses from companies to resolve consumer issues and takes the information into account in supervisory and enforcement work. The CFPB has also released timely information on new programs aimed at helping struggling consumers during this time. These programs include student loan payment suspension; mortgage forbearance; stimulus payments; and the paycheck protection program. Additionally, the Bureau has a centralized webpage with information on how consumers can protect their finances during the pandemic.
FHFA’s regulated entities, the Enterprises and the Federal Home Loan Banks provide more than $6.3 trillion in funding for the U.S. mortgage market and set the standard for how the mortgage system works. In response to the COVID-19 national emergency the Enterprises permitted borrowers with a financial hardship due to the pandemic the ability to enter into forbearance, a pause or reduction in their monthly mortgage. The missed payments will have to be paid back by the borrower. FHFA does not require lump sum repayment at the end of the forbearance. The missed payments can be added to the normal monthly payments, paid back all at once, tacked on to the end of the loan, or the borrower can have the term of the loan extended. Renters who live in a multifamily property with an Enterprise-backed mortgage cannot be evicted due to a COVID-19 loss of income. To see the additional actions FHFA has taken to help Americans impacted by the coronavirus remain in their homes, please visit the newly launched joint website.
Part of HUD’s Office of Housing, the Federal Housing Administration (FHA) is the largest mortgage insurer in the world with an active insurance portfolio of over $1.3 trillion. In response to the COVID-19 national emergency, FHA permitted borrowers to enter into forbearance, a pause or reduction in their monthly mortgage for up to six months. Borrowers can request an additional six months if needed. FHA does not require lump sum repayment at the end of the forbearance. FHA has developed the COVID-19 Standalone Partial Claim to assist with repayment. If borrowers were current, or less than 30 days delinquent as of March 1, 2020, they may be entitled to this option. A partial claim is a zero interest, no fee, junior lien on the borrower’s property that will become payable when the borrower sells their home, pays off their mortgage, or their mortgage otherwise terminates. If the borrower does not qualify for the COVID-19 Standalone Partial Claim, FHA offers other tools to help repay missed payments over time. For more information on FHA mortgages please call 1-800-CALL-FHA (1-800-225-5342), or visit www.hud.gov/coronavirus or please visit the newly launched joint website.
Senate Confirmation of Brian Montgomery as HUD Deputy Secretary
May 12, 2020
Washington, D.C.–Former FHA Commissioner Brian Montgomery was confirmed by the US Senate today as the Deputy Secretary of the Department of Housing and Urban Development.
CFPB Paves Way for Consumers Facing Financial Emergencies to Obtain Access to Mortgage Credit More Quickly
April 29, 2020
WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (Bureau) took steps to make it easier for consumers with urgent financial needs to obtain access to mortgage credit more quickly in the middle of the COVID-19 pandemic.
“The steps we are taking today will help consumers facing financial emergencies obtain access to mortgage credit faster,” said CFPB Director Kathleen L. Kraninger. “The pandemic is resulting in consumers facing various challenges, and our temporary and targeted solutions are intended to ensure that consumers receive the credit they need in a timely manner.”
The steps taken today will help those institutions better serve consumers to obtain access to mortgage credit quickly, despite operational disruptions. These steps also will reduce regulatory uncertainty and allow creditors to focus their resources on meeting consumers’ needs. The Bureau is issuing an interpretive rule clarifying that consumers can exercise their rights to modify or waive certain required waiting periods under the TILA-RESPA Integrated Disclosure Rule and Regulation Z rescission rules. The Bureau is also issuing an FAQ document that addresses when creditors must provide appraisals or other written valuations to mortgage applicants in order to expedite access to credit for consumers affected by the COVID-19 pandemic.
Resources for consumers facing the impacts of the COVID-19 pandemic are available on the Bureau’s website at https://www.consumerfinance.gov/coronavirus/. The Bureau will continue to update these materials.
FHFA Addresses Servicer Liquidity Concerns, Announces Four Month Advance Obligation Limit for Loans in Forbearance
Agency also clarifies that loans under forbearance will remain in MBS Pools
April 21, 2020
FHFA announced today that loans in forbearance will remain in MBS Pools and the alignment of Fannie & Freddie’s policies for residential loan servicers . Regardless of servicer size and type, once loan servicers advance four months of missed P&I mortgage payments, additional payments are not required.
See entire press release HERE.
Fannie Mae, Freddie Mac Extend URLA Implementation Timeline
Freddie Mac and Fannie Mae announced yesterday they will extend the implementation timeline for the redesigned Uniform Residential Loan Application and automated underwriting systems to support the industry during the COVID-19 pandemic.
The new mandate date for use of the redesigned URLA and AUS specifications is March 1, 2021.
Fannie Mae and Freddie Mac said the extension provides lenders and other stakeholders additional time to prepare and implement the redesigned URLA (Freddie Mac Form 65 and Fannie Mae Form 1003) and the updated automated underwriting system (AUS) data specifications (Freddie Mac Loan Product Advisor v5.0.06 and Fannie Mae Desktop Underwriter (DU) DU Specification MISMO V. 3.4) based on Mortgage Industry Standards Maintenance Organization (MISMO) v3.4.
Source: MBA www.MBA.org