Following his inauguration on Wednesday, President Joe Biden revealed that he plans to sign 17 executive orders his first day in office, including a further extension of the eviction and foreclosure moratorium to at least March 31.
Brian Deese, Biden’s choice to lead the National Economic Council, said the president will call upon the Centers for Disease Control and Prevention and the departments of Veterans Affairs, Agriculture and Housing and Housing and Urban Development, to aid in an immediate extension of their federally backed mortgages.
“These emergency measures are important,” Deese said. “There are more than 11 million mortgages guaranteed by the VA, Department of Agriculture and HUD that would be affected by the extension of the foreclosure moratorium.”
Biden had previously outlined strategies to mitigate foreclosures and evictions in his housing agenda, which included a Bill of Rights that will prevent mortgage servicers from advancing a foreclosure when the homeowner is in the process of receiving a loan modification.
The agenda also outlined plans to build upon the Obama-Biden Administration’s Protecting Tenants at Foreclosure Act, that includes a law prohibiting landlords from discriminating against renters receiving federal housing benefits.
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VRM Mortgage Services CEO shares how the company is navigating a difficult year, and how its services are impacted by the different national, state and local directives on foreclosure.
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On Tuesday, the Federal Housing Finance Agency extended for a fifth time moratoriums on single-family foreclosures and real estate owned evictions for loans backed by Fannie Mae and Freddie Mac until Feb. 28, 2021.
HUD had previously extended its moratoriums for loans backed by the Federal Housing Administration in late December – also through the end of February.
“Today’s foreclosure moratorium and forbearance extensions for single family homeowners ensure American homeowners continue to have the critical relief and support they need to get back to financial stability,” said HUD Secretary Ben Carson following the December extension.
Although foreclosures have remained at record lows due to the widespread moratoriums, data analytics giant Black Knight estimated seriously past-due mortgages (90+ day delinquencies) were still 1.8 million above pre-pandemic levels in November.
