FHFA: Foreclosure Suspension for Borrowers Applying for Relief Through HAF
The Federal Housing Finance Agency (FHFA) announced on April 6 that Fannie Mae and Freddie Mac (the Enterprises) will require servicers to suspend foreclosure activities for up to 60 days if the servicer has been notified that a borrower has applied for assistance under the Department of the Treasury’s Homeowner Assistance Fund (HAF).
This action is the latest step FHFA has taken to benefit homeowners and the mortgage market during the pandemic. FHFA continues to monitor the effect of the COVID-19 servicing policies on borrowers, the Enterprises and their counterparties, and the mortgage market. Homeowners can visit consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines.
About the Homeowner Assistance Fund
The purpose of the Homeowner Assistance Fund (HAF) is to prevent mortgage delinquencies and defaults, foreclosures, loss of utilities or home energy services, and displacement of homeowners experiencing financial hardship after Jan. 21, 2020. Under the American Rescue Plan Act of 2021, HAF provides up to $9.96 billion for states, territories, and tribal entities to provide financial relief for homeowners. HAF is administered by the Department of the Treasury.
The Leagues encourage credit unions to share this information with struggling borrowers who may qualify for the assistance. For California, click here. For Nevada, click here.
