Posted 3 years ago
President Joe Biden is extending a ban on home foreclosures for federally backed mortgages by three months and expanding 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 instead will be 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 will extend 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 now allow borrowers to defer mortgage payments for an additional six months. Eligible homeowners must be enrolled in a forbearance plan by the end of June.
There are currently 11 million federal government-backed mortgages nationwide. Around 2.7 million homeowners are enrolled in COVID-19 forbearance plans.
In a statement, the White House said Biden is committed to protecting home ownership and housing stability during the pandemic, calling the extended forbearance and foreclosure programs "an important step towards building stronger and more equitable communities."
Topic: US News
Tags: Covid-19 Joe Biden Stimulus Checks President Biden