Moratoriums on evictions extended until the end of December, but not for everyone
Moratoriums on foreclosures and evictions on some federal-backed mortgages have been extended until the end of December. Writes about it Yahoo! Money.
The extension will benefit the 28 million homeowners who have mortgages guaranteed by Fannie Mae and Freddie Mac, according to a press release from the Federal Housing Finance Administration (FHFA).
The eviction moratorium applies to property that was purchased by Fannie or Freddie. Initially, it was assumed that both moratoriums were to end on 31 August.
“I think this is positive news for low- and middle-income homeowners,” said Mark Zandi, chief economist at Moody's Analytics. "Extending the moratorium due to the pandemic is a good idea because it will limit the long-term damage that can occur if people lose their homes."
"We need Congress to pass the finance package"
While the current extension will act as a temporary respite for those with housing, FHFA said it is monitoring the situation if additional measures are needed. FHFA predicts additional spending of $ 1,1 billion to $ 1,7 billion.
On the subject: Eviction bans expired: can you be homeless during a pandemic
More needs to be done, experts say. The moratorium does not take into account about 30 million American tenants facing eviction. Almost a third of homeowners and renters have unpaid housing bills as of August.
More than two weeks ago, US President Donald Trump issued an executive order directing federal agencies to address the issue of evictions during the pandemic.
Moratoria also did not affect the growing loss of jobs: last week another $ 1 million Americans filed for unemployment benefits.
“If all we get is just a moratorium on evictions or leniency, that won't help boost the economy enough,” Zandi said. We need Congress to pass a fiscal support package to bolster the economy, otherwise we will face big problems. "
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