President Joe Biden signed an executive order Monday to boost government buying from U.S. manufacturers. (Jan. 25) AP Domestic
WASHINGTON – President Joe Biden on Tuesday extended a ban on home foreclosures for federally backed mortgages by three months and expanded a mortgage relief program in a push to stabilize the nation’s housing affordability crisis amid the COVID-19 pandemic.
The foreclosure moratorium was set to expire March 31 and is now in place through June 30. It’s the second time Biden has extended the ban after he used one of his record number of Day One executive actions to push back a previous Jan. 31 end date.
The Biden administration Tuesday also extended the enrollment window to request a mortgage payment forbearance – which allows borrowers to pause or reduce mortgage payments – until June 30. That program also was scheduled to end in March.
As a result of a third action, the federal government will allow borrowers to defer mortgage payments for an additional six months. Eligible homeowners must have enrolled in a forbearance plan by the end of last June.
There are 11 million federal government-backed mortgages nationwide. Around 2.7 million homeowners are enrolled in COVID-19 forbearance plans.
More: FHFA extends moratorium on evictions, foreclosures for two more months
In a statement, the White House said Biden is committed to protecting homeownership and housing stability during the pandemic, calling the extended forbearance and foreclosure programs “an important step towards building stronger and more equitable communities.”
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President Joe Biden speaks during a visit to the National Institutes of Health (NIH) in Bethesda, Maryland, Feb. 11, 2021. (Photo: SAUL LOEB, AFP via Getty Images)
The White House said the extended protections are in part aimed at prioritizing communities of color hit hardest by the pandemic. Homeowners of color make up a disproportionate share of the home owners with delinquent loans or on forbearance plans.
However, Tuesday’s actions did not address the Centers for Disease Control and Prevention’s federal moratorium on evictions for not paying rent. That moratorium is also set to expire March 31. About one-third of all Americans, roughly 107 million people, are renters.
The Biden administration has been meeting with stakeholders to assess their next steps on the eviction policy, according to a White House official, but did not offer additional details.
The foreclosure and eviction prevention measures pre-date the Biden administration. Former President Donald Trump last extended the moratorium on federally backed foreclosures in August. Through the CDC, Trump in September initiated a four-month moratorium on evictions for renters unable to make payments.
In Biden’s $1.9 trillion COVID-19 relief bill, which he’s pushing Congress to pass in the coming weeks, the president has proposed a $10 billion Homeowners Assistance Fund that would provide states with federal assistance to help homeowners with mortgage payments and utility costs.
More: Millions of Americans could lose their homes despite President Biden’s eviction moratorium order
The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, last week issued a three-month forbearance extension to borrowers nearing the end of their forbearance plans. According to the White House, the actions collectively cover 70% of existing single-family home mortgages. None apply to the 30% of mortgages that are privately owned.
More than 10 million adults live in a household that is not caught up on mortgage payments, according to the Center on Budget and Policy Priorities, citing the U.S. Census Bureau’s Pulse Survey.
Tuesday’s actions were made through a coordinated effort by the U.S. Housing and Urban Development, Veterans Affairs and Agriculture departments. Homeowners and renters can learn about available relief options and deadlines at consumerfinance.gov/housing.
Reach Joey Garrison on Twitter @joeygarrison.
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