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While the terms won?t apply to everyone, it?s a good start President Donald Trump announced Wednesday a sweeping moratorium on foreclosures for homeowners with mortgages backed by Fannie Mae or Freddie Mac or Federal Housing Administration mortgages on single-family homes. On Friday, federal regulators went a step further by allowing payment deduction or deferral on mortgages backed by Freddie or Fannie for as long as year for those who have lost income or employment because of the novel coronavirus fallout.
What specific relief a homeowner will get depends on their situation, but terms have not been made public. According to NPR, federal regulators believe the entire mortgage industry will follow suit with providing relief, so if you?re in trouble, contact your mortgage servicer immediately. (You can find your servicer?s contact information on your mortgage statement.) FHA loans and public housing residents account for more than 9 million households, while Freddie- or Fannie-backed mortgages account for the majority of single-family homes. The Freddie and Fannie moratorium will last at least 60 days.
The moves come in response to the economic fallout caused by the spread of COVID-19, commonly referred to as novel coronavirus, which could lead to unemployment rising as high as 20 percent, according to Treasury Secretary Steve Mnuchin.
Fannie Mae and Freddie Mac are guarantors on the majority of mortgages, which they buy and bundle into bonds called mort...