FEDERAL MORTGAGE DEADLINES:
Loan Type Moratorium Expires Announced
FHA June 30, 2021 Feb 16, 2021, Mortgagee Letter 2021-05
VA June 30, 2021 Feb 16, 2021, https://blogs.va.gov/VAntage/84744/va-extends-existing-moratoriums-evictions-foreclosures-extends-loan-forbearance-opportunities/
USDA June 30, 201 Feb 16, 2021, https://www.rd.usda.gov/coronavirus
Fannie Mae June 30, 2021 Feb 26, 2021 LL 2021-02 https://singlefamily.fanniemae.com/media/24891/display
Freddie Mac June 30, 2021 Feb 25, 2021 https://guide.freddiemac.com/app/guide/bulletin/2021-8
If you are struggling to pay your mortgage, it is important to know the loan type you have (FHA, VA, USDA, Fannie Mae, Freddi Mac). Your options and timelines vary by loan type. If you need help to determine your loan type, call SCLO (Paul Spear, 505.322.8345).
The CARES ACT provided two benefits (Moratorium & 180-day Forbearance/Extension) for homeowners with “federally related” mortgage loans. Federally related loans are home mortgages backed, indirectly or directly, by the US federal government.
Indirect: Fannie Mae and Freddie Mac mortgages are indirect federal loans. Fannie and Freddie are called Government Sponsored Entities (GSEs) and are regulated by the Federal Housing Finance Agency (FHFA). Note: FHFA is a different entity than Federal Housing Administration (FHA), which is part of the department of Housing and Urban Development.
Direct: FHA, USDA, or VA are direct mortgages.
Federal Moratoriums apply to Foreclosures and Evictions like a blanket over the entire loan type (FHA, VA, USDA, Fannie Mae, Freddie Mac). During a federal moratorium, a lender cannot file a new foreclosure or continue prosecuting an existing foreclosure (unless the house is vacant or abandoned), and a lender cannot start or continue an existing eviction. Current deadlines are as follow:
180-day Forbearance/Extension under the CARES Act are granted on individual loans, with an additional 180 days available upon request of the homeowner. The relief is called “Forbearance” for traditional (Forward) mortgages, and is called an “Extension” if the loan is a reverse mortgage. Under Forbearance, the Lender will forbear/delay collecting installments otherwise due. With a reverse mortgage Extension, the lender will delay prosecuting a foreclosure. In certain cases, it is possible to obtain two additional 3-month forbearances, for a maximum of 18 months.
Each loan type has its own deadline for granting an initial Forbearance/Extension.
Loan Type Initial Request by: Announced/Reference Source
FHA Jun 30, 2021 Feb 16, 2021, Mortgagee Letter 2021-05
VA Jun 30, 2021 Feb 16, 2021, https://blogs.va.gov/VAntage/84744/va-extends-existing-moratoriums-evictions-foreclosures-extends-loan-forbearance-opportunities/
USDA Jun 30, 2021 Feb 16, 2021, https://www.rd.usda.gov/coronavirus
Fannie Mae No deadline announced https://www.consumerfinance.gov/about-us/blog/mortgage-relief-deadlines-extended/
Freddie Mac No deadline announced https://www.consumerfinance.gov/about-us/blog/mortgage-relief-deadlines-extended/
