Biden administration announces moratorium on foreclosures, mortgage forbearance extension
WASHINGTON, DC (WTXL) – The U.S. Department of Agriculture has announced an extension of the moratoriums on evictions and foreclosures on USDA direct and guaranteed loans for single-family housing until June 30, 2021.
The actions announced on Tuesday will bring relief to residents of rural America who have home loans through the USDA.
“The USDA recognizes that the COVID-19 pandemic has triggered an almost unprecedented housing affordability crisis in the United States. This is why USDA is taking this important step today to extend assistance to the hundreds of thousands of individuals and families with USDA Single Family Housing Loans, ”said USDA Assistant Under Secretary. for rural development, Justin Maxson. “Although today’s actions are an important step for them, we need to do more. The Biden administration is working closely with Congress to pass the US bailout to take more robust and aggressive action to bring further relief to American families and individuals affected by the pandemic. “
A recent Census Bureau surveyy showed that 8.2 million homeowners are currently behind on mortgage payments, and of those 8.2 million, 3 million homeowners behind on payments were black or Hispanic.
This effort underscores USDA’s commitment to providing relief and assistance to farmers, families and communities across the country who are in financial difficulty due to the coronavirus pandemic. In January, the USDA took action to provide relief to more than 12,000 distressed USDA farm loan borrowers by temporarily suspending overdue debt collections, foreclosures, non-judicial foreclosures, debt set-offs, or debt settlements. wage garnishments, etc.
Visit www.rd.usda.gov/coronavirus for more information on USDA’s rural development COVID-19 relief efforts, application deadline extensions, and more. USDA Rural Development will keep our clients, partners and stakeholders informed on an ongoing basis as additional steps are taken to bring relief and development to rural America.
Owners and tenants can also visit www.consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key timelines from the USDA, Department of Housing and Urban Development, Department of Veterans Affairs, Federal Housing Finance Agency, and Consumer Financial Protection Office.
BACKGROUND: Extension of the foreclosure moratorium
Actions announced today extend until June 30 the moratorium on foreclosures and evictions announced by the USDA, the Direct Loan Program for Single-Family Housing (SFHDLP) and the Guaranteed Loan Program for Single-Family Housing (SFHGLP) Jan. 20, 2021., 2021. The moratorium does not apply in cases where the USDA or the lender of service has documented that the property is vacant or abandoned.
Lenders can continue to provide relief to affected borrowers by offering a forbearance of the loan guaranteed by the borrower for up to 180 days. In addition, the initial forbearance period can be extended up to a further 180 days at the borrower’s request.
Lenders can approve the initial 180-day COVID-19 forbearance no later than June 30, 2021. SFHGLP borrowers who received a COVID-19 forbearance before June 30, 2020 may be granted up to two additional forbearances. three months.
Lenders should describe potential solutions that may be available at the end of the forbearance period and explain to borrowers that a lump sum payment of the arrears will not be required.
During the forbearance options described above, no accumulation of fees, penalties or interest should be charged to the borrower beyond the calculated amounts as if the borrower had made all contractual payments on a timely basis.
At the end of the forbearance, the lender will work with the borrower to determine if they can resume their regular payments and, if so, come up with an affordable repayment plan or term extension to defer any missed payments back to the bank. end of loan.
If the borrower is unable to resume regular payments, the lender should assess the borrower for special relief measures, including term extensions, funding and term extensions, as well as an advance. mortgage recovery.
Questions regarding program policy and this announcement can be directed to the National Office Division at [email protected] or (202) 720-1452.
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas.
This aid supports the improvement of infrastructure; Business development; lodging; community facilities such as schools, public safety and health care; and high-speed Internet access in rural areas.
For more information visit www.rd.usda.gov [r20.rs6.net].