Federal Housing Finance Agency Extends Forbearance Period to 18-Months

The Federal Housing Finance Agency (FHFA) on Thursday (2/25/21), announced that borrowers with mortgages backed by Fannie Mae and Freddie Mac may be eligible for an additional forbearance extension of up to six months. On February 9th, the FHFA extended forbearance plans an additional three months beyond their initial 12-month expiration. With this announcement, the FHFA is now allowing borrowers up to 18 months of coverage. According to the FHFA, eligibility for the extension is limited to borrowers who are on a COVID-19 forbearance plan as of February 28, 2021. The FHFA said other limits may apply to the extension but did not provide further details. With the new extension set in motion, some borrowers may now be in forbearance through August 31, 2022. Alongside its forbearance announcement, the FHFA also said the GSEs will be extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions through June 30, 2021 — three months past the previous deadline set for March 31, 2021. The new date matches the moratorium set by HUD for FHA and USDA loans.