As millions of Americans continue to suffer from the COVID-19 pandemic, President Biden continues to take action to help individuals and families stay in their homes. The COVID-19 pandemic has triggered a housing affordability crisis. Today, 1 out of 5 tenants lagging behind on rent and just over 10 million homeowners defaulting on mortgage payments. Colored people face even greater difficulties and more likely to be delayed or missed payments, putting them at greater risk of eviction and foreclosure.
Today, as part of the President’s commitment to provide immediate assistance to American families affected by this crisis, the Department of Housing and Urban Development, the Department of Veterans Affairs and the Department of Agriculture announced a coordinated extension and expansion of tolerance and foreclosure relief measures. programs. These critical protections were due to expire in March, leaving many at risk of going back into debt and losing their homes. Homeowners will now receive urgently needed help as we face this unprecedented national emergency. Today’s action builds on the steps the president took on day one to extend the moratorium on federal-guaranteed mortgage loans.
The actions announced today will be:
- Extend the moratorium on homeowner buyouts until June 30, 2021;
- Extend the registration period for a deferred mortgage payment until June 30, 2021 for borrowers who want to apply for a deferred payment;
- Provide up to six months of additional grace period for mortgage payments in three month increments for borrowers who entered the grace period before June 30, 2020 or earlier.
The Department of Housing and Urban Development, the Department of Veterans Affairs, and the Department of Agriculture have worked in concert to ensure that the above actions reach the largest possible number of Americans. Last week, the Federal Housing Finance Agency, an independent agency overseen by Fannie Mae and Freddie Mac, extended the grace period by three months for borrowers who are about to expire. This coordinated action will cover 70 percent of existing single family home mortgages.
President Biden is committed to protecting home ownership and housing stability as America begins to turn a painful crisis into a sustainable recovery. Today’s expanded abstinence and foreclosure programs are an important step towards building stronger and more equitable communities.
To support these efforts, it is imperative that Congress adopts the American Rescue Plan to provide more assistance to homeowners in need. The bailout plan sets up a Homeowners Assistance Fund that will provide $ 10 billion to states to help needy homeowners catch up on mortgage and utility bills. This relief is critical for homeowners with mortgages in the private market who are unable to take advantage of today’s action and may face longer-term problems.
The Biden-Harris administration’s priorities in expanding this protection are as follows:
Provide immediate assistance to homeowners across America. Today’s action is directly benefiting the 2.7 million homeowners currently abstaining from COVID and expanding the availability of abstinence options for nearly 11 million government-backed mortgages across the country. Large and small communities need this help. That’s why the Department of Housing and Urban Development, the Department of Veterans Affairs, and the Department of Agriculture have worked together to provide comprehensive assistance to urban, suburban, rural and military homeowners, including seniors with reverse mortgages.
Support hard-hit communities of color. The medical and economic costs of this crisis were not felt evenly, and this pattern repeated itself throughout the pandemic. Expanding the tolerance policy will provide critical support to homeowners of color, who make up a disproportionate share of overdue borrowers. indulgence due to the hardships associated with COVID. On his first day in office, President Biden pledged to promote racial equality in all government programs and policies. Today, agencies are stepping up housing assistance that will strengthen communities of color and lay the foundation for a just recovery.
Provide a centralized resource for housing assistance. Homeowners and renters can visit consumerfinance.gov/housing for up-to-date information on their assistance options, protection and key deadlines. As federal agencies continue to work to provide housing assistance to American families, the Consumer Financial Protection Bureau is offering this website as a one-stop-shop for homeowners and renters to learn about programs and resources that can help them stay in their homes by reducing the risk of eviction and foreclosure.