Today has been full of big news in the real estate world. As we indicated yesterday, the CDC did indeed extend its national eviction ban for yet another month.
On top of this, White House officials also announced an extension of its foreclosure moratorium on government-backed loans, and the Federal Housing Finance Agency did the same for Fannie Mae- and Freddie Mac-backed mortgages.
Finally, in a third huge headline this morning, the White House also announced it would extend the deadline for new mortgage forbearance filings through Sept. 30.
It's a lot to take in, for sure, so let's break these developments down one by one.
The eviction ban
The CDC's eviction ban has been up against countless lawsuits lately -- even getting struck down entirely in one case -- but has managed to withstand it all. Now, it seems landlords have yet another month to deal with the fallout of the ban, as well as all the unpaid rent that comes with it.
Fortunately, the agency has indicated that this current extension will be the last one -- meaning come August 1? Evictions could be back on the table.
That's not to say they'll be easy -- or even necessary. The White House followed up the CDC's news by announcing a slew of eviction protection efforts, including:
- Accelerating the payout of Emergency Rental Assistance funds
- Urging state and local courts to adopt antieviction diversion practices
- Asking state and local governments to use American Rescue Plan funds to create eviction diversion programs
- Launching a White House Summit for eviction prevention
- Enforcing a 30-day eviction notice requirement on all federally backed properties
- Better communication of rental assistance options to vulnerable tenants and landlords
The White House announced: "Today, the Biden-Harris Administration is announcing a number of steps to keep people in their homes by protecting renters and homeowners who are still experiencing shocks from the pandemic and its economic fallout. Following the CDC's decision to extend the eviction moratorium for one final month through July 31, 2021, the Administration is announcing a series of actions to help state and local governments prevent evictions."
The foreclosure moratorium
The White House also announced an extension to the federal foreclosure moratorium, preventing servicers from foreclosing on FHA, VA, and USDA loans until July 31. Again, this is intended to be the last extension.
The FHFA made a similar announcement for Fannie and Freddie loans, again extending the moratorium through the end of July for single-family homes.
When those extensions do end, the White House has said it will continue to take action to prevent undue foreclosure amid the pandemic.
A White House statement read: "Once the moratoria end, HUD, VA, and USDA will take additional steps to prevent foreclosures on mortgages backed by those agencies until borrowers are reviewed for COVID-19 streamlined loss mitigation options that are affordable. FHFA will continue to work with Fannie Mae and Freddie Mac to ensure that borrowers are evaluated for home retention solutions prior to any referral to foreclosure."
Mortgage forbearance options
Last but not least, the administration also announced it would push back the mortgage forbearance filing deadline to Sept. 30 of this year. It was previously set to expire at the end of this month.
Additionally, HUD, the VA, and the USDA will be announcing payment reduction options next month for borrowers still underwater. This "will enable more homeowners to stay in their homes," according to the White House.
The bottom line
The country might be opening back up, but there are still plenty of pandemic-era measures still impacting foreclosures -- at least for the next couple of months. The various lawsuits involving the CDC eviction ban could throw a kink in things, but we'll keep you updated as those stories develop.