The White House announced that it would extend the federal moratorium preventing housing foreclosures and forbearances until the end of June.
Initially set to expire in March, the updated moratorium includes numerous extensions. The foreclosure moratorium was extended through June 30, 2021, and the mortgage payment forbearance enrollment window was extended until June 30, 2021 for interested borrowers. Up to six months of additional mortgage payment forbearance was guaranteed for borrowers who agreed on or before June 30, 2021.
The extension of the federal moratorium started by President Donald Trump was among the first executive orders enacted by President Joe Biden.
Housing and Urban Development, Veterans Affairs, and Agriculture will lead efforts to enact this measure, read a statement from the White House. The Consumer Financial Protection Bureau will manage resource information.
“President Biden is committed to protecting homeownership and housing stability as America begins to turn a painful crisis into a robust recovery,” read the White House statement. “Today’s extended forbearance and foreclosure programs are an important step towards building stronger and more equitable communities.”
The White House did not miss an opportunity to push for a swift passage of its $1.9 trillion coronavirus relief package. The Biden administration argues doing so would provide states with $10 billion to assist homeowners with mortgage and utility costs.
As of September, roughly a quarter of Americans have taken advantage of some form of payment deferral program.
