The Department of Housing and Urban Development (HUD) is suspending evictions and foreclosures for single-family home owners with Federal Housing Administration (FHA)-insured mortgages through April as the nation grapples with the coronavirus.
HUD said the guidance issued today applies to homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages, and directs mortgage servicers to:
· Halt all new foreclosure actions and suspend all foreclosure actions currently in process; and
· Cease all evictions of persons from FHA-insured single-family properties.
“This is an uncertain time for many Americans, particularly those who could experience a loss of income. As such, we want to provide FHA borrower households with some immediate relief given the current circumstances,” said Brian Montgomery, FHA commissioner, in a statement. “Our actions today make it clear where the priority needs to be.”
HUD secretary Ben Carson also said on Twitter that HUD is “working with Congress to give HUD the authority to prevent evictions in Public Housing programs.”
In addition, the Federal Housing Finance Agency (FHFA) has directed government-sponsored enterprises Fannie Mae and Freddie Mac to halt foreclosures and evictions for at least 60 days. The foreclosure and eviction suspension applies to homeowners with an enterprise-backed single-family mortgage.
“This foreclosure and eviction suspension allows homeowners with an enterprise-backed mortgage to stay in their homes during this national emergency," said director Mark Calabria. “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. The enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance."
Earlier this month, the FHFA announced that the government-sponsored enterprises would provide payment forbearance to borrowers impacted by the coronavirus. Forbearance allows for a mortgage payment to be suspended for up to 12 months due to hardship from the coronavirus outbreak.
Advocates are calling for additional measures, especially for the lowest-income and most vulnerable residents.
“The actions taken today by HUD secretary Ben Carson and FHFA director Mark Calabria are important first steps to ensuring that renters and homeowners are able to keep a roof over their head during the coronavirus pandemic,” said Diane Yentel, president and CEO of the National Low Income Housing Coalition. “By extending a moratorium on evictions and foreclosures to residents of public housing and homeowners with loans covered by FHA, Fannie Mae, and Freddie Mac, we can help prevent households from losing their homes during this public health emergency. But far more is needed to protect the people who are at the greatest risk of evictions and homelessness—America’s lowest-income renters who were already struggling to pay rent and make ends meet before this latest disaster, and people experiencing homelessness.”
Yentel said Congress must implement a national moratorium on all evictions and foreclosures, as well as fund rental assistance and grants to homeless service providers and outreach workers.
“Now more than ever, housing is health care,” she said.
The National Housing Conference (NHC) called on Congress and the Trump administration to institute a housing voucher program to support renters who lose their jobs for the duration of the COVID-19 pandemic.
“We need to immediately streamline and reform the housing voucher program so it can provide support to all of those who are impacted by this crisis and allow landlords to take the vouchers without bureaucratic red tape or regulatory risk for as long as the national interest requires,” said David M. Dworkin, NHC president and CEO.
“Vouchers should be available online and available to renters who lose their jobs as a result of the outbreak of COVID-19.” Dworkin said. “An out of work carpenter is no less deserving of federal support than an out of work minimum wage dishwasher.”
