President Trump announced today that the Department of Housing and Urban Development will be suspending foreclosures and eviction for mortgages insured by the Federal Housing Admission.
This, fortunately, is a big help for over 8 million households.
There is also an order for Fannie Mae and Freddie Mac to suspend foreclosures and eviction for single-family mortgages and that it should be backed up for 60 days according to the Federal Housing Finance Agency.
The agency director, Mark Calabria, made a statement and said, “ This foreclosure and eviction suspension allows homeowners with an enterprise-backed mortgage to stay in their homes during this national emergency.”
He continued, “As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage should reach out to their mortgage servicers as soon as possible… The enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance.”
Earlier this month, the FHFA made an announcement that all government-sponsored enterprises would be provided payment forbearance that means payment of mortgages will be suspended for up to 12 months, specifically to borrowers which are hit by this coronavirus pandemic.
Furthermore, Fannie and Freddie are reminding the mortgage services that this forbearance is an option for these people who cannot make payments.
Congresswoman Carolyn B. Maloney wrote a letter to the 106 members of the congress and asked them for immediate action. “We must take proactive steps to protect the millions of working-class families, low-income households and minority communities who will be disproportionately affected as increasingly aggressive quarantine measures develop and are implemented on the local, state and federal levels.”
As of the moment, there are many banks and other establishments that have responded to the coronavirus and the mortgage business.
Wells Fargo said it is committed to opening their banks “We remain focused on meeting the needs of our customers while reducing the risk to our employees and customers. The majority of our employees serve customers, care for critical operations or are in regulated capacities and therefore unable to work from home.”
JPMorgan Chase also is taking another approach JPMorgan Chase & Co. is planning to implement a staggered work-from-home plan for its New York-area employees after the governor asked businesses to help the state slow the spread of the coronavirus.
The bank will split the workers, with one group working from home while the other is in the office, according to people with knowledge of the matter. After a week, the groups will rotate.
The plan applies to most corporate employees based in Manhattan, Brooklyn and Jersey City, New Jersey, but not to branch workers or traders, one of the people said.
The firm sent its Seattle-area employees home last week. Caliber Home Loans also made a statement regarding its employees working from home.
Fairway Mortgage said, We’re working on migrating our entire home office to work from home——department to department.” Black Knight will also be requiring their employees to do the same as the others, work from home.