A moratorium has been extended on conforming loans as fast-track modifications are implemented. Meanwhile, more states are implementing their own moratoriums — which some see as beneficial to all parties.
Fannie Mae today said that its suspension of foreclosures on owner-occupied single-family properties will be extended to Jan. 31.
The extension will help servicers implement the streamlined modification program announced in November. It will also give Fannie more time to implement its new rental policy of allowing renters in real estate owned to stay in their homes.
Freddie Mac also announced an extension of moratoriums on its loans until Jan. 31, though its statement indicated that occupied single-family properties as well as occupied two- to four-unit properties qualify for the extension.
The moratorium — which applies to loans that are at least 90 days delinquent and managed by either government sponsored enterprise — was originally announced on Nov. 20, 2008, and affected foreclosures and evictions scheduled to occur between Nov. 26, 2008, and Jan. 9, 2009.
In other moratorium news, the Pew Center on the States reported last month that nine states have either instituted a foreclosure moratorium or increased the waiting period after a notice-of-default filing. Those states are California, Colorado, Connecticut, Maryland, Massachusetts, New York, North Carolina, Pennsylvania and Virginia.
Fitch Ratings said in December that few banks had so far announced foreclosure moratoriums and modification programs that will impact securitized mortgages, though such action had occurred on bank-owned loans. Fitch noted new California legislation delaying foreclosures, while banks like JP Morgan Chase and Citibank have announced temporary moratoriums.
Fitch indicated that moratoriums increase the chance of contact with delinquent borrowers.
Nevada’s Governor Jim Gibbons issued a recent press release thanking banks for halting foreclosure sales and evictions in the state on bank-owned mortgages until Jan. 31.
“Your program to pause the foreclosure process while working with homeowners will greatly aid those who are trying to stay in their homes,” the governor’s news release stated. “Working with them to resolve their issues benefits everyone.”
Related:
Conforming Foreclosures Suspended
Delinquent borrowers on conforming mortgages were given an early gift for the holidays.
