[POWER LENDING]
D
ue to the spread of the Novel Coronavirus, Freddie Mac in March announced that it was taking the necessary actions to protect the people affected, directly or indirectly by the virus. Specifically, Freddie Mac targeted the singlefamily business, where it announced a nationwide suspension for all the foreclosures sales and evictions of the borrowers living in homes owned by the company. Freddie Mac also announced that to include a variety of additional mortgage relief options, which includes an expansion of its forbearance program, to incorporate additionally impacted borrowers. This comes at a very great time when homeowners and the renters who are reeling under financial effects will have fears of losing their homes to foreclosures or being evicted during the public health crisis. The president announced that the Department of Housing and Urban Development is suspending all the foreclosures and evictions until the end of April. HUD later stated its official stand, stating that the Federal Housing Administration was enacting an “immediate foreclosure and eviction moratorium for single-family homeowners with FHA-insured mortgages” which would hold for the next 6o days.
EXTENDING A HELPING HAND. This is How Freddie Mac and Fannie Mae are Doing It.
“This foreclosure and eviction suspension allow homeowners with an Enterprise-backed mortgage to stay in their homes during this national emergency,” FHFA Director Mark Calabria said in a statement. Given that Freddie Mac and Fannie Mae are the largest mortgage financiers in the country, the move is a significant one and bears a huge impact.
“As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage should reach out to their mortgage servicers as soon as possible,” Calabria added. “The Enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance.” 26 l
THE POWER IS NOW MAGAZINE | APRIL 2020
