USDA, FHA Announce End to Pandemic Forbearances Effective May 31st
USDA, FHA to end pandemic-related forbearances on May 31
On Monday (4-10-23), President Biden signed a resolution that ends the presidentially declared national emergency for the COVID-19 pandemic that has been in place for over three years, according to “HousingWire” (4-11-23). Originally, the emergency declaration was scheduled to expire on May 11th.
As a result, the forbearances granted by the US Department of Agriculture (USDA), the US Department of Housing and Urban Development (HUD), and the Federal Housing Administration (FHA) due to the pandemic-related financial hardships will also soon come to an end, according to HousingWire and the announcement made by all three agencies on Tuesday. Forbearances are now slated to end on May 31st.
In its announcement regarding the policy, the USDA said:
“As the National Emergency may end earlier than originally expected, USDA has determined that a short period beyond the expiration of the COVID-19 National Emergency would be beneficial to both the USDA borrowers and servicers. The USDA is extending the date by which a servicer may approve a borrower’s request for an initial COVID-19 forbearance.”
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