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Fannie Mae, Freddie Mac Announce Moratorium Extensions

Posted By USFN, Friday, May 15, 2020

Fannie Mae and Freddie Mac both announced today that they will be extending a moratorium on foreclosures and evictions through June 30.

In their announcement, Freddie Mac stated that servicers “…must suspend all foreclosure actions, including foreclosure sales, through June 30, 2020. This includes initiation of any judicial or non-judicial foreclosure process, move for foreclosure judgment or order of sale. This foreclosure suspension does not apply to Mortgages on properties that have been determined to be vacant or abandoned.”

Fannie Mae specified, “During the period of the extension, servicers may not, except with respect to a vacant or abandoned property, initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure sale. This suspension does not apply to mortgage loans secured by properties that have been determined to be vacant or abandoned.

We generally require servicers to file motions for relief from the automatic stay in bankruptcy cases upon certain milestones. In light of the CARES Act and other impacts resulting from the COVID 19 National Emergency, on Apr. 8, 2020, we temporarily relieved servicers of the obligation to meet these timelines. We are continuing this temporary suspension. Servicers must continue to work with their bankruptcy counsel to determine the appropriate time to file such motions”

The move is a continuation of a directive from the Federal Housing Finance Agency (FHFA), in which the two entities were instructed on March 18 to suspend foreclosures and evictions for at least 60 days. The FHFA originally enacted the moratorium in response the to the national emergency that was declared on March 13 by President Trump due to the COVID-19 outbreak.  

Fannie Mae Lender Letter (LL-2020-02)

Freddie Mac Bulletin 2020-16: Temporary Servicing Guidance Related to COVID-19

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